After a cycle of development, DeFi has become the most successful decentralized application built on blockchain and has completely changed the landscape of the cryptocurrency market. Cryptocurrency trading has gradually shifted from off-chain to on-chain, and has evolved from simple swaps to a wide range of ecosystems including lending, staking, and derivatives trading.
In the field of DeFi, 45% of on-chain spot trading occurs on Uniswap, which is undoubtedly the industry leader. Its groundbreaking centralized liquidity solution and permissionless listing mechanism provide users with the most efficient yield products and trading experience, and release a large amount of on-chain liquidity, providing crucial infrastructure for the prosperity and diversity of the ecosystem.
In the derivatives track, SynFutures is rising in the same way and is known as the "Uniswap of the derivatives track". This article will delve into the mechanisms of SynFutures and the innovations it brings to the derivatives track, as well as how to seize the opportunities brought by SynFutures.
About SynFutures
SynFutures is a decentralized perpetual contract protocol built on Blast and is the first derivatives protocol deployed on-chain after the release of Blast mainnet. It has now iterated to version 3 (V3). The Oyster AMM model in V3 is the first unified AMM and on-chain order book model in the derivatives track.
SynFutures' V1, V2, and UniSwap V2 are all based on the xyk formula AMM model, which has low capital utilization and high slippage caused by shallow depth.
In V3, SynFutures draws on the concentrated liquidity model and permissionless listing mechanism of Uniswap V3, and introduces the Oyster AMM model based on the infrastructure of SynFutures sAMM model. The oAMM model allows LPs to concentrate liquidity in specified price ranges, maximizing capital efficiency and liquidity depth, providing traders with smoother trading experience, and minimizing trading losses.
SynFutures has raised a total of $38 million in three rounds of financing, including top-tier investment institutions such as Polychain Capital, Framework Ventures, Bybit, Wintermute, CMS, Kronos, IOSG Ventures, Pantera Capital, SIG, and HashKey Capital.
Continuous growth in data, potential emerging
According to data from the official website, SynFutures has accumulated a trading volume of $65.9 billion, providing more than 110,000 users with over 3 million transactions. The trading volume continues to rise, with a daily peak of $1.8 billion.
According to data from DeFillama, SynFutures currently has a TVL of $70 million, and the daily trading volume is stable at over $1 billion. Based on the past 30 days' data multiplied by 12, SynFutures' annual fee income is expected to exceed $125 million.
SynFutures has strong profit potential, which is the basis for the project's long-term healthy operation, continuous innovation, and iteration.
Concentrated liquidity solution for derivatives
SynFutures' Oyster AMM model allows liquidity to be added within specified price ranges and combines leverage to improve capital efficiency. Unlike Uniswap V3's spot market liquidity model, the Oyster AMM adopts margin management and liquidation framework tailored for derivatives trading, ensuring the security of LPs and the protocol.
Traditionally, our trades have been limited to specific trading pairs, with very few options available. The oAMM model introduces bilateral liquidity, allowing liquidity to be provided with only one token, without the need for a 1:1 provision of both assets. Liquidity providers can list any trading pair, such as meme coin pairs or pairs of any assets. This mechanism brings more flexibility and choices to the ecosystem.
The Oyster AMM model brings more advantages to liquidity providers and the protocol, including:
Improved capital efficiency
Concentrated liquidity allows LPs to be effective within specific price ranges instead of being dispersed across the entire price range, reducing the proportion of idle funds and allowing funds to be efficiently utilized in transactions. LPs can provide more liquidity with more funds, increasing capital utilization.
Increased potential returns
By concentrating funds within a specific price range, the trading frequency and available funds increase, and the fees that LPs can earn also increase accordingly. Liquidity providers can earn higher returns within price ranges that experience frequent market fluctuations, increasing overall potential returns.
Better depth, lower slippage
The Oyster AMM model has a positive impact on the depth and liquidity of trading. A market with better depth can attract more traders, further increasing trading volume and activity. This virtuous cycle not only improves LPs' returns but also enhances market stability and health.
The better the depth, the lower the slippage for traders during transactions, resulting in lower transaction costs. The improved trading experience leads to more active trading, thereby generating more trading revenue.
Enforcing true decentralization - permissionless listing
Currently, trading pairs on decentralized derivatives protocols require approval from project teams or communities, which greatly limits the speed of innovation and market flexibility. The review process usually involves lengthy time and cumbersome procedures, resulting in slow listing of new trading pairs and the inability to quickly respond to market demands and changes. This mechanism contradicts the original intention of decentralization in DeFi and hinders market spontaneity and innovation.
Similar to Uniswap, SynFutures allows the addition of liquidity without permission. This consistent design principle of decentralization, inherited from Uniswap, can further stimulate innovation and vitality in the ecosystem.
In SynFutures, anyone can list any trading pair at any time in multiple ways:
Adding liquidity in 30 seconds
The oAMM itself is an open-source smart contract deployed on-chain and has the characteristic of permissionless. Without the need for complex pre-listing communication and review, anyone can add any trading pair at any time.
Both project teams and token holders can create trading pairs for their own tokens and add liquidity on SynFutures. This brings more options to the ecosystem and improves responsiveness.
Permissionless on-chain order book
The permissionless addition of liquidity by oAMM enhances market flexibility. However, the nature of oAMM requires a large amount of liquidity to support trading. The order book model is the best choice to improve capital efficiency, as it allows liquidity to be concentrated around the mid-price. Compared to LPs, less capital is required to support more trading volume, improving user experience.
Currently, derivatives protocols such as dYdX and AEVO adopt off-chain matching and on-chain confirmation order book models. SynFutures V3 introduces an on-chain order book model, which has the characteristics of permissionless and anti-censorship while ensuring transparency. Transactions are fully executed on-chain, reducing vulnerabilities in on-chain and off-chain systems, improving efficiency, and ensuring the security and robustness of transactions.
This design of freedom, flexibility, and complete decentralization can bring more positive effects, including:
Unlocking market potential and encouraging innovation
Lowering entry barriers
Activating liquidity
Improving market flexibility
Blast airdrop is coming, ecosystem explosion imminent, seizing opportunities with SynFutures
Blast will be airdropped on June 26th. As a star Layer 2 project, Blast has attracted over 1 million users and reached a TVL of over $3 billion at its peak without issuing tokens. This popularity and appeal will bring more attention and adoption during the Blast airdrop.
According to data from DeFillama, there are currently 115 DeFi protocols on the Blast chain, most of which have not yet released project tokens.
With the launch of the Blast token, more on-chain protocols will start their TGEs. SynFutures' permissionless listing and concentrated liquidity mechanism will provide rapid response to the ecosystem, stimulate market potential and flexibility, and provide more viable trading strategies and choices for projects and users in the ecosystem.
More projects will also bring more users and liquidity to SynFutures, increasing its trading volume and profit potential, and bringing more expectations for SynFutures' future TGEs.
SynFutures' Odyssey event is currently ongoing, and users can receive Blast Gold Points and SynFutures O_O Points through trading, providing liquidity, creating limit orders, and inviting new users, and receive airdrops from Blast and SynFutures.
Future outlook
Currently, over 98% of cryptocurrency market transactions are contract-based, generating billions of dollars in daily trading volume. However, most of these transactions occur on centralized exchanges. According to data from The Block, only 1% of perpetual trading occurs on-chain. Decentralization is an unstoppable trend, and more and more users will transfer their trades to the blockchain in the future. The derivatives track will be a sub-sector with explosive power and wealth effects.
SynFutures' on-chain activity, trading volume, and user base continue to rise, reaching new highs. It consistently ranks among the top three in trading volume in the derivatives track, especially in the Blast ecosystem. These data not only demonstrate high recognition from users but also indicate its strong competitiveness in the market.
With the launch of the Blast token and the explosion of the ecosystem, SynFutures will experience strong growth. SynFutures is to Blast as Uniswap is to Ethereum. In the future, SynFutures will also be deployed on multiple chains, benefiting more ecosystems, expanding its user base and market share, and bringing tremendous growth potential.
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