February 29, 2024, Singapore – SynFutures, a leading decentralized contract platform, announced today the launch of its new V3 platform on the Blast mainnet. The platform utilizes a proprietary Order Book Automated Market Maker (oAMM) mechanism. This on-chain deployment seamlessly integrates the advantages of order books and AMM models into a unified liquidity model, thereby improving capital efficiency and ease of operation, making it more comparable to centralized exchanges.
Table of Contents
Toggle
Boosting User Engagement and Loyalty on DEX
SynFutures V3 Capital Efficiency and User-Friendliness
Analyzing SynFutures’ Oyster AMM Mechanism
Boosting User Engagement and Loyalty on DEX
With increasing uncertainties associated with centralized exchanges, there is a growing urgency among retail investors to find decentralized solutions. The rising trading volume on decentralized exchanges indicates that the decentralized exchange bull market has begun, and SynFutures is actively organizing activities to further enhance user engagement. The Oyster Odyssey Points Incentive Program is one such initiative aimed at distributing points to users based on their level of participation in on-chain activities, allowing users to participate in the upcoming Blast airdrop.
SynFutures V3 Capital Efficiency and User-Friendliness
With the approval of Bitcoin ETFs, upcoming halvings, and the expected approval of Ethereum ETFs, the optimism in the crypto market has spread to the DeFi and derivatives markets. However, decentralized exchanges face significant challenges in capturing market share in the derivatives market, accounting for less than 1.0% of the market share compared to the dominance of centralized exchanges. The fundamental problem lies in the pricing and execution competitiveness of decentralized exchanges, which hinders their ability to gain a larger share in the highly profitable derivatives market.
Advertisement – Continue scrolling for more content
[img]
[img]
[img]
[img]
In light of the challenges faced by decentralized contract platforms, SynFutures will launch V3 on the Blast blockchain, utilizing its unique Order Book Automated Market Maker (oAMM) mechanism to address existing shortcomings and establish new capital efficiency standards for the decentralized derivatives market.
The decision to launch V3 on Blast is strategically significant. Like any Rollup, Blast improves transaction speed, reduces costs, and maintains the security of Ethereum. It is worth noting that Blast’s native yield functionality has brought approximately $20 billion in total value locked (TVL) and attracted over 146,000 users.
Rachel Lin, Co-founder and CEO of SynFutures, said, “Through these improvements, SynFutures is committed to achieving higher capital efficiency in the decentralized derivatives field, making us more competitive in the competition with centralized exchanges. V3 not only provides a secure and user-friendly environment but also addresses the barriers that have hindered widespread adoption of derivative trading on decentralized exchanges.” She added, “With the expected increase in institutional participation in 2024, this upgrade will prepare us for the upcoming growth in trading volume by increasing transaction throughput and reducing transaction costs.”
Pacman (Tieshun Roquerre), a core contributor to Blast, said, “We are delighted to welcome SynFutures to Blast. As early adopters of the Blast testnet, we look forward to seeing their continued success on the Blast mainnet!”
Indeed, a series of signals indicates an imminent turning point in the participation of decentralized exchanges, including SynFutures. Since the launch of its V3 platform on the public testnet in October 2023, SynFutures has witnessed active participation from 81,016 users in trading activities, recording a total of 460,662 transactions on the Goerli and Blast-Sepolia chains, demonstrating impressive performance. It is worth noting that the average user conducted 5.686 transactions, highlighting the ecosystem’s vibrancy.
Additionally, the V3 platform has shown remarkable momentum on the Blast chain, accounting for 10% of the significant increase in trading volume at the end of January, which is quite impressive.
Analyzing SynFutures’ Oyster AMM Mechanism
SynFutures is a decentralized exchange focused on sustainable futures trading in the cryptocurrency field. Perpetual futures contracts are contracts without expiration dates, allowing investors to speculate on the price of crypto assets without the need for physical settlement.
[img]
[img]
The innovative Oyster Automated Market Maker (AMM) mechanism in the market allows users to list tokens within 30 seconds without permission, including mainstream coins, altcoins, NFTs, and indices. It ensures bidirectional liquidity while allowing users to provide liquidity through single-asset liquidity, simplifying the entire trading ecosystem, continuing the user-friendly concept of SynFutures V1 and V2.
Automated Market Making (AMM) is a preferred model for decentralized exchanges, but it requires high liquidity to achieve comparable price impact to order book models. To increase liquidity, the Oyster AMM introduces an innovative market-making model that seamlessly integrates centralized liquidity AMMs (CL AMM) and on-chain order books into a unified model, providing significant capital efficiency improvements for active traders and passive liquidity providers. This model promotes liquidity concentration within specific price ranges and introduces leverage for automated market makers, addressing issues such as high fees and limited trading functionality.
Compared to the order book model of centralized exchanges, the V3 model introduced by SynFutures on the Blast chain helps ensure transparency, permissionless trading, and resistance to censorship, eliminating reliance on centralized administrators and mitigating vulnerabilities across chains and off-chain systems.
To protect users and maintain price stability, SynFutures V3’s Oyster AMM introduces advanced financial risk management through a dynamic penalty mechanism. This mechanism helps prevent price manipulation and allows liquidity providers to strike a balance between risk and reward.
SynFutures
[img]
[img]
Related Reading
Airdrop Information| Community Scans Nearly 200 Potential Airdrop Cryptocurrency Projects (Part 3)
Is Binance Threatening National Security? Nigeria Speaks Out: Binance Devalued National Currency by 70%