In recent years, DeFi has significantly increased the transparency and efficiency of financial markets. Today's investment research project is SynFutures, a decentralized derivatives exchange currently deployed on Blast (soon to be on Base). The protocol is currently iterating to version V3, using a comprehensive derivatives market-making model that combines the advantages of the order book and AMM models.
Website: https://www.synfutures.com/
Twitter: https://x.com/SynFuturesDefi
01 Project News
SynFutures launched the Blast mainnet in March 2024, and subsequently launched incentive programs such as Oyster Odyssey and Blast Gold points. Currently, SynFutures' TVL has reached 60 million US dollars, and its trading volume has exceeded 114 billion US dollars, far surpassing competitors such as Synthetix and Drift.
On June 18, SynFutures announced that it will continue to expand its derivatives market share by expanding to Base and launching the "SynFutures Meme Perp Summer" plan. As a disruptor in the derivatives track, SynFutures has the following unique advantages:
Supports trading Meme Token perpetual contracts. For example, long$Brett, short$Degen, etc.
You can use Meme Token as margin for trading, for example, use $Degen as margin
Supports permissionless listing of coins. Anyone can freely create perpetual contract trading pairs and be their own banker
Centralized liquidity mechanism similar to UniSwap V3 to improve your efficiency and trading experience
Limit orders can get Fee Rebate - it should be the highest rebate ratio in the industry, and anyone can participate
Provide 100K USDC and SynFutures future airdrop rewards (up to 10K USDC per project) to support Base potential meme projects and help launch on SynFutures.
02 Technical Architecture
Synfutures' key features include a single token for centralized liquidity, a fully on-chain order book, and a single model for unified liquidity. Its V1 enables LPs to add liquidity to trading pairs using a single token, and its V2 expands on this by adding new liquidity provision methods. SynFutures V3 emphasizes capital efficiency, requiring only one set of margin to provide liquidity to both parties.
In V3, SynFutures adopted the centralized liquidity model and permissionless listing mechanism of Uniswap V3 and launched the Oyster AMM model. The oAMM model allows liquidity providers (LPs) to concentrate liquidity in a specified price range, improve capital efficiency and liquidity depth, reduce transaction losses, and provide a better trading experience. oAMM also combines leverage to improve capital efficiency and provides a customized margin management and liquidation framework for derivatives trading to ensure the security of LPs and protocols.
Unlike popular spot market liquidity models such as UniSwap v3, Oyster AMM introduces a margin management and liquidation framework tailored specifically for derivatives. In addition, Oyster AMM only needs to use one token to provide liquidity, and supports any ERC 20 as margin, including meme coin pairings and Liquid Restaking tokens (LRT).
The Oyster AMM model is built on the infrastructure of the SynFutures sAMM model and its advantages include:
Improve capital efficiency : Centralize liquidity to reduce idle funds and enable more funds to be used efficiently.
Increase potential returns : Funds are concentrated in a specific price range, increasing transaction frequency and available funds, and increasing LP's fee income.
Better depth and lower slippage : Better market depth attracts more traders, reduces transaction slippage, improves trading experience, and increases trading income.
In addition, SynFutures follows a fully decentralized design, allowing liquidity to be added without permission, stimulating innovation in the ecosystem. Anyone can add trading pairs at any time, increasing market responsiveness.
Protocol security is a crucial part of the DeFi field. SynFutures' V1, V2 and V3 versions have all passed the audit of the security agency Quantstamp, and its code quality has been highly praised by the security agency.
03 Investment institutions
SynFutures has received a total of US$38 million in investment through three rounds of financing, including top investment institutions in the industry such as Polychain Capital, Framework Ventures, Bybit, Wintermute, CMS, Kronos, IOSG Ventures, Pantera Capital, SIG, and HashKey Capital.
SynFutures' two co-founders, Rachel Lin and Matthew Liu, both graduated from Peking University. Rachel Lin previously served as senior vice president of Matrixport, and was a senior expert at Ant Financial and vice president of Deutsche Bank's Global Markets Department. Matthew Liu was previously the head of global partnerships at Ant Group.
04 Project Summary
With the growing development of DeFi technology and the collapse of FTX due to its over-centralization, the derivatives track will become the most explosive and wealth-effect segment. SynFutures has shown extraordinary potential in terms of data, technical reserves and user experience, attracting the attention of many investors and developers, and becoming a force that cannot be ignored in the field of decentralized finance.
Currently, there are 126 DeFi protocols on the Blast chain, most of which have not yet released tokens. With the Blast token airdrop in June, more on-chain protocols will launch TGE. SynFutures' permissionless listing and centralized liquidity mechanism will provide a rapid response to the ecosystem, stimulate market potential and flexibility, and provide more trading strategies and options.
At the same time, it has currently expanded to the Base network, and the MEME Perp Summer launched in combination with the characteristics of the Base network is expected to further expand its market share and compete with projects such as dYdX, Hyperliquid and GMX for the leading position in the derivatives track.
