SynFutures is a decentralized platform for trading derivatives, providing users with the ability to freely create and trade futures contracts on various assets, including cryptocurrencies, real-world assets, and more. Since its launch in 2020, SynFutures has aimed to democratize access to derivatives by offering an open and transparent market for all participants.
Contents:
- History and Development of SynFutures
- Platform Architecture
- Oyster AMM Model
- Liquidation Process and Risk Management
- Advantages and Achievements
- Conclusion
History and Development of SynFutures
SynFutures was founded in late 2020 with the goal of creating an open and decentralized platform for trading derivatives. Its first product was fixed-margin futures (V1), which underwent an audit by the leading blockchain security firm PeckShield. The audit identified and promptly resolved several vulnerabilities, confirming the platform’s reliability and security.
In June 2021, SynFutures launched a closed alpha version on the Ethereum and Polygon networks, granting early access to over 7,000 users. A month and a half later, version 1.2 was released, featuring an improved user interface and bug fixes. In July 2021, the platform introduced Bitcoin hashrate futures, enabling traders to profit while managing risks associated with mining difficulty changes.
Platform Architecture
SynFutures has developed a unique architecture that includes a synthetic automated market maker (sAMM) and an automatic liquidator (ALQ). The sAMM acts as a market participant with its own margin account, always ready to set prices based on the constant product formula and its current position. Users can add and remove liquidity as well as deposit and withdraw margin through the sAMM.
Liquidators play a key role in maintaining platform stability. When the margin balance falls below the required level, liquidators can take over the positions of accounts subject to liquidation, providing the necessary margin at the current price and earning rewards for their actions.
Oyster AMM Model
In SynFutures V3, the Oyster AMM model was introduced, enhancing the capabilities of the sAMM by incorporating concentrated liquidity and allowing the use of a single token for providing liquidity. This eliminates the need to provide liquidity for both sides of a trading pair, simplifying the process for users.
Oyster AMM also features a margin and liquidation management mechanism specifically designed for derivatives. This enables traders and liquidity providers to efficiently manage their positions and risks, creating a more stable and predictable trading environment.
Liquidation Process and Risk Management
SynFutures has implemented advanced risk management mechanisms, including a dynamic penalty fee system that prevents price manipulation by imposing penalties for significant deviations between the transaction price and the margin price. Additionally, the margin price stabilization mechanism, which utilizes an exponential moving average, reduces the risk of sharp price fluctuations and mass liquidations.
Liquidators on the platform can initiate liquidation by using their own funds to take over the position of the account subject to liquidation, or they can use the automatic liquidator, which leverages AMM liquidity for liquidation, lowering the barriers to participation in the liquidation process.
Advantages and Achievements
SynFutures has achieved significant milestones by offering users innovative solutions in decentralized derivatives. Key advantages and achievements of the platform include:
- High trading volume: In Q3 2024, SynFutures V3 recorded a trading volume of $71 billion, confirming its leading position among perp DEX.
- Growth in user activity: The average daily active addresses increased by 58.5% compared to the previous quarter, reaching 7,788.
- Expansion to new networks: In July 2024, SynFutures successfully launched on the Base network, quickly becoming the leading perp DEX on this platform and reaching over $380 million in daily volume by the end of Q3.
- Securing investments: In October 2023, the company raised $22 million in a Series B funding round led by Pantera Capital, highlighting investor confidence in the platform.
- Diverse trading pairs: The platform supports a wide range of assets, including native Ethereum assets, cross-chain digital assets, and real-world assets, providing users with flexibility in trading.
- Innovative Oyster AMM model: SynFutures introduced the Oyster AMM model, combining concentrated liquidity and limit orders to enhance capital efficiency and reduce risks when listing long-term assets.
These achievements underline SynFutures’ commitment to providing a reliable and efficient environment for derivatives trading, fostering the development of the DeFi ecosystem.
Conclusion
SynFutures is actively developing its ecosystem by establishing strategic partnerships with leading DeFi projects. As part of the Perp Launchpad program, the platform integrated the wstETH/ETH trading pair in collaboration with Lido Finance, expanding user opportunities in derivatives trading.
Additionally, integration with Vooi, a cross-chain perp DEX aggregator, enables users of both platforms to trade and provide liquidity, enhancing the accessibility and efficiency of trading operations. These partnerships highlight SynFutures’ commitment to building an open and inclusive derivatives ecosystem.
