We believe the opportunity to revolutionize perpetual markets is as big as — if not 10–100x bigger than — Uniswap’s breakthrough for spot trading. The key is permissionless listings, enabling any token, big or small, to have a high-quality perps market without relying on centralized gatekeepers or inflated hype.
This has been our mission for years, and the technology is now ready to make it a reality.
Example: $100K Liquidity Bootstrapping
Let’s say a project provides $100,000 worth of tokens as liquidity (LP).
Here’s how the system works step-by-step:
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Multi-DEX Integration
The solver lists your token’s perps on two (or more) DEXs, aggregates liquidity from both, and uses this combined depth to calculate spreads, price impact, and order execution.
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Trade Execution
Traders can now go long or short instantly.
- Every trade incurs a spread (revenue for the solver).
- The solver uses your LP plus external DEX liquidity to hedge positions.
- A borrow rate is calculated as part of the margin system.
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Hedging Logic
Example:
- A trader opens a $10K long.
- Solver sets aside $10K worth of your token from LP.
- If market conditions allow, the solver might set aside less, using that same token allocation to support multiple traders — a strategic decision to maximize efficiency.
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Opening Shorts Against Longs
Once a $10K long exists, the system can now open a $10K short for another trader.
- The short side also generates spreads, funding, and liquidation revenue.
- Most importantly, the long and short PnL offset each other — meaning your LP is no longer directly exposed.
When PnL Is Covered by Traders, Not LP
Once both sides of the market are active:
- The traders’ PnL is matched between them.
- Your LP is only needed for initial bootstrapping — it’s no longer the primary risk capital.
- All fees, funding, and liquidation proceeds become pure profit for the LP provider.
At this stage, the perpetual market effectively “runs on trader activity,” while your liquidity remains largely untouched — freeing nearly all revenue to flow directly into 100% token buybacks.
LP Risk in Perspective
If the solver is the counterparty: