1/ What is Surf Finance? What's the difference?

A decentralized derivatives exchange on Base. Uniswap is the first permissionless spot dex and Surf Finance is the first permissionless derivatives exchange.

Anyone can choose to list a specific trading pair, even if this currency does not list derivatives on any CEX/DEX.

Specifically, some small currencies and high-tax currencies, such as the recently popular $Token, can open a pool in Surf Finance. The threshold is very low, and the Base chain handling fee is also very low, so the transaction experience will be better.

2/ How to implement permissionless transactions?

A Liquidity Provider (LP) voluntarily provides liquidity and assumes the profits or losses of another trader on any specific asset position. To put it simply, anyone can take the initiative to open a pool and act as an LP and be responsible for their own profits and losses.

The price of the contract is determined by a combination of Oracle and TWAP prices. The risk structures of currencies with different liquidity, market value, and volatility are also different, so the LP thresholds and handling fees corresponding to different assets will also be different. If there are enough LPs, market competition will eventually lead to the optimal allocation.

3/ How to distribute handling fees

LP takes 80% of the handling fee, 100% of the capital fee, 90% of the liquidation residual, and 100% of the user's net profit and loss. It is very clean. Based on these fees and LP's implementation method, many matryoshka dolls can be made. It may be a series of products.

4/ Where is the space for imagination?

The competitive landscape of DeFi basic protocols on ETH has been relatively clear. However, derivatives are relatively less dependent on the asset nativeness of the main chain. It can be seen that all the newer L1/L2 are doing derivatives transactions. This is also the easiest way to grow bigger and stronger on the new public chain. Previously the most popular transactional protocol on the Base chain was Friend.tech, but now it is like One.

Focusing on the product itself, Surf’s license-free nature is currently the strongest competitive feature. In addition, the product essentially provides a [transaction method]. If this method is used on mainstream currencies/ERC-20 tokens, it will be in its current form. In the future, it can be expanded to all types of assets, as well as more complex structured products, on risk swap products.

5/ Are there any token/airdrop expectations?

The economic model has not been announced yet, and there is currently only a testnet.

https://twitter.com/surf_protocol/status/1718937047304753512