SynFutures v3 is the latest iteration of the decentralized derivatives platform. SynFutures v1 introduced the first permissionless listing and trading of any crypto asset. SynFutures v2 offered a more streamlined, easier-to-navigate user experience for traders and liquidity providers. SynFutures v3 is designed to cater to a larger pool of market participants. The revolutionary Oyster Automated Market Maker, deployed fully on-chain, combines the best of concentrated liquidity and order book in a single model for improved liquidity, enabling everyday traders, professional market makers, and liquidity providers to benefit.SynFutures Team, October 18, 2023
However, a capital eiciency boost comes with higher risks for LPs, especially in derivatives market settings where leverage further amplifies the risks. These risks can be diicult to grasp with the overlay of leverage and capital eiciency boost. So, beyond the numbers, the mechanism must be clear concerning these risks so that LPs know what they are doing. 5 ) (5) (6) SynFutures v3: The Oyster AMM Model for Next-Gen DeFi Derivatives. Table 1: Capital Eiciency Boost 1/,
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Capital Eiciency Boost IMR = 10% IMR = 5% IMR = 3% IMR = 1% 1.01 99.0%, 101.0% 26,666.6x 1.03 98.0%, 103.0% 2,962.9x 5,364.9x 1.05 95.2%, 105.0% 1,066.6x 1,460.9x 2,317.8x 1.10 90.9%, 110.0% 266.6x 404.7x 510.5x 691.0x 1.20 83.3%, 120.0% 102.2x 139.5x 163.3x 196.9x 1.30 76.9%, 130.0% 56.1x 72.4x 81.8x 94.1x 1.50 66.7%, 150.0% 25.6x 31.1x 34.0x 37.5x 2.00 50.0%, 200.0% 8.7x 10.0x 10.6x 11.3x 3.00 33.3%, 300.0% 3.0x 3.3x 3.5x 3.6x 5.00 20.0%, 500.0% 1.1x 1.2x 1.2x 1.3x Table 2: Capital Eiciency Boost Comparison Across Models Model Price Range Capital Eiciency Boost Oyster Amm 99.99%, 100.01% 39,997.0x Uniswap v3 99.99%, 100.00% 40,002.5x Uniswap v3 100.00%, 100.01% 39,998.5x Uniswap v3 99.99%, 100.01% 20,000.5x
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3.4 Implementation Highlights The smart contract implementation describes concentrated liquidity in a struct called Range. It is stored in the smart contract with an index composed of pair expiry, liquidity owners address, price range start, and price range end. The struct definition and index information define concentrated liquidity in the smart contract entirely and uniquely. struct Range { uint128 liquidity; uint128 entryFeeIndex; uint96 balance; uint160 sqrtEntryPX96; // uniswap v3 style liquidity // snapshot of the global fee index at the time of entry // margin supplied // AMM price at the time of entry } To add liquidity, a user needs to send a transaction on-chain specifying the pair to add liquidity, the price range to provide liquidity, and the margin amount for this concentrated liquidity. The smart xvirtual yvirtual, as calculated contract then creates a Range struct for the user with liquidity = with Equation (1), (2) and (5).
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Based on Equation (3) and (4), the state of a Range struct can be implied using the data stored in the struct, its index, and the current AMM price at any point in time. 6 SynFutures v3: The Oyster AMM Model for Next-Gen DeFi Derivatives. 4 Fully On-chain Order Book
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