Derivatives DEX-vAMM mechanism Thiab technology Implementation

The persistent protocol is a set of exchange agreements based on the vAMM mechanism. Prior to the announcement of dYdX, it was a dark horse rushing to the forefront of several DEX derivative projects. Here is what the vAMM mechanism is and describes how to use the extension process.

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talk every week

What is the VAMM mechanism?

The full name of vAMM is Virtual Automated Market Maker, which means you don't have to sign up, trade, wait for partners (no financial service providers, no downsizing) and don't worry. for the safety of your money. Perpetual Protocol vAMM is designed to be a mid-size business and a total lender. No real estate (k) is stored in vAMM itself. Instead, the actual assets are stored in a smart contract that manages all devices that support vAMM. Standard system users should use USDC as the source and source code for their vaults and update vAMM data at the same time. The actual entry and exit of assets by users is both USDC. The perpetual process uses vAMM as a cost recovery mechanism, but is not suitable for commercial spaces and only promotes continuous operation.

Pictures of Pictures: The Rent To Forever

The old standard for vAMM is x * y = K. The K value is a self-generated value at the start of the vAMM process and can be increased or decreased at any time after the vAMM is created in response to new operations.VAMM providers have this permission, but cannot move funds held in Vault.

Adjusting the K value is a small equation. If K is too low, user contracts will generate too many failures and there will be no need to change the system. However, if K is too high, the judge may not have sufficient funds to keep the vAMM value in line with the measured value below.

Perpetual Protocol plans to gradually convert the group to the DAO model in future versions.With the DAO model, K can be algorithmically designed and K can be configured to work on the packaging industry, open positions, payments, trades and other exchanges.

agreement is important

Perpetual Protocol's core protocol is based on Ethereum and xDai and uses scalable Layer 2 solutions to provide fast and low cost operations. No fuel costs for the industry thanks to the use of xDAi. You can open up to 10 times the leverage.

L1 and L2 architecture diagram

Image source: https://docs.perp.fi/getting-started/how-it-works/trading

Although xDai is used to deploy on the Ethereum mainnet, the diagrams in the L1 and L2 diagrams allow the whole system to easily switch to other solutions (L2 and other chains). , etc.). Definitely vote DAO to wipe out the market on xDai, take a snapshot of status (trader activity, balance, etc.) Just think.

Financial value

Perpetual protocols use financial ratios to balance buying and selling.Version V1 uses Chainlink as a valuable Oracle technology and provides metric-based data usage. The loan rate is the same as on the FTX exchange. The Perpetual Protocol also provides for insurance premiums which are used to ensure that investors who place an order can benefit from it.

Official formula: Fund ratio = (TWAP of the futures price - TWAP of the index) / 24

Marge ratio

The Margin Ratio is calculated by adding the Principal Margins and P&L at a given position and then dividing by the Nominal Position (Principal Position multiplied by the value * released).

If the yield is less than 6.25%, it will be forced into liquidation.

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weekly reports

1. Escape

We remember the birth, growth, emergence and break-up of new racetracks.Paradigm revolution in blockchain technology brings new benefits, home improvement, heritage, beauty ... Layer 2 / Sidechain improvements, Ethereum fuel prices are now researched and rely on news and developments. old classes. Paradigm severe reworking.

1, behind 2

Polygon is a Layer 2 solution in the Ethereum chain that uses side chains for connecting chains to achieve the same capabilities while ensuring the security of the property using Plasma Framework and Proof of node validation. Stake (PoS). It is used to observe ecological changes in layer 2.

Figure 1.1: Polygonal network

Data source: polygon statistics

Figure 1.2: Differences in payment options (ETH vs Polygon)

Data source: polygon statistics

2. ETH fuel cost

Ethereum is the network and ETH is the fluid of the network. Indeed, you will have to pay fees to rural staff when changing location. The price is Gas Limit * Gas ​​Price, the fuel limit is the maximum amount of fuel you have to pay in exchange, and the fuel price is the price of each fuel.

Figure 1.3: Average daily price of oil (gwei) over the past 90 days

Source: Dune

Figure 1.4: Average daily oil prices over the past 90 days

Source: Dune

Ob, NFT

NFTs fueled explosive growth.NFTs are not homogenized tokens, but the important feature is that each NFT has a unique and unique character, both are not transient and the smallest unit is 1 and invisible. Following my theory of this method, I clean the data from the NFT sector.

1. Piece NFT

CryptoSlate is a blockchain news platform that provides up-to-date information and rankings on cryptocurrencies related to blockchain and cryptocurrency.

Figure 1.1: Overview of NFT parts

File source: Cryptoslate

2, social money

Social money is a social token, and we see it as one of the potential uses of blockchain to “break out of the circle” of small size in the future. Community money is still in its infancy and industry rankings are chosen to influence the current economy.

Figure 1.2: Ranking of social money transactions

Data source: FOREWORD

3. Industry of TVN

The NFT Marketplace packaging is used to influence the reputation of the NFT market and is an important indicator of the growth of NFTs.

Figure 1.3: Monthly NFT Market Volume (USD)

Data source: FOREWORD

To monitor changes in the NFT business environment, we track changes in the TOP 10 earnings results each week.

Figure 1.4: Market ranking of coin projects announced in the NFT top 10

File source: Cryptoslate

Monitor changes in TOP 10 NFT activities each week to monitor changes in NFT business plans.

Figure 1.5: Top 10 Speakers in the NFT Market in the Last 7 Days

Material source: non-fungible

Ob, DeFi

This week, DeFi's improvement peaked.DeFi stands for Decentralized Financial and has seen growth over the past two years, we believe blockchain will change the basis of financial services today. Opening financial contracts will make businesses more profitable and create wealth.

DeFi legacy is used to influence DeFi maintenance, an important indicator of improvement in the DeFi ecosystem.

Figure 2.1: Total Payments for Ethereum DeFi

Data source: DEFI PULSE

The DeFi address number indicates the current number of DeFI users and is one of the key factors in determining the size and state of the DeFi ecosystem.

Figure 2.2: DeFi address value

Source: Dune

The BTC to DeFi cross-chain is an important indicator of the growth of the business.

Figure 2.3: BTC d'Ethereum

Source: Dune

Securities are digital assets, and the size and growth of cryptocurrencies affects and even affects the size and growth of crypto assets, and is one of the largest in the industry.

Figure 2.4: Publication of stable financial data

Source: Dune

5. 7-day Dex trading volume

Dex represents decentralized exchange and is an integral part of the DeFi ecosystem. The 7-day Dex trading volume is used to determine DeFi performance in the ecosystem.

Figure 2.5: 7-day Dex packaging

Source: Dune

Lending business is at the heart of DeFi, and daily lending is used to influence changes in the lending industry. Daily loans = daily loans - daily loans.

Figure 2.6: Monthly Bitcoin Exchange Volume

Source: Dune

3. Hierarchy of assets

The price of Bitcoin has fallen this week and the price of Ethereum has changed this week.Now the market value of bitcoin is866.64 ibMarket price of US dollar and Ethereum400.69 ibnear the dollar. This week, market demand is announced (current market: 49).

1. TOP20 industrial exchange

CryptoYC counts and counts the market value of TOP20 crypto assets on a weekly basis. It is used to monitor changes in the crypto asset industry.

Figure 3.1: TOP20 Crypto Asset Market Price Chart

Data Source: CoinMarketCap

2. Exchange the packaging

Volume trading is used to disrupt the trading environment for crypto assets.

Figure 3.2: Monthly Bitcoin Exchange Volume

Data source: Bitcoin

3. Market sentiment index

Businesses Business Marketing is an aggregation that reflects the fears / desires of the business community. 0 means "horror" and 100 means "lust".

Figure 3.6: 30-day market sentiment index

Data source: alternative

Fourth, the power calculator layer

According to data from BiHang, the Bitcoin count energy is 155.5172 EH / s.

1. Bitcoin xam fais fab

The total Bitcoin network metering power is used to affect the total value of the Bitcoin network.

Figure 4.1: Monthly Bitcoin Hash Rate Graph

Data source: bitinfocharts