In the evolution of digital asset trading, perpetual trading as a derivatives market has become a crucial component of the cryptocurrency sector. While centralized exchanges still dominate, decentralized perpetual protocols have surged rapidly over the past two years, achieving nearly a tenfold increase in open interest.
Amid this increasingly competitive landscape, RabbitX has emerged into the spotlight of the cryptocurrency market. As a globally permissionless perpetual trading platform powered by Starknet, RabbitX aims to build the safest and most liquid global derivatives network, offering users round-the-clock access to global markets.
This article will delve into the core design, technical features, and positioning of RabbitX within the cryptocurrency ecosystem. By analyzing RabbitX's innovations, we can gain a clearer understanding of the potential impact and opportunities that the next generation of perpetual trading platforms may bring, as well as their role in driving the entire DeFi industry forward.
Based on ZK technology, supporting 20x leverage trading: RabbitX becomes a representative of decentralized perpetual exchanges.
RabbitX (RBX) is a globally permissionless perpetual trading platform powered by Starknet, aiming to create the safest and most liquid global derivatives network. As the first decentralized perpetual project launched in collaboration with Starknet, RabbitX provides 24/7 global market access, offering traders an unparalleled trading experience.
RabbitX integrates state-of-the-art ZK infrastructure with a powerful risk engine, coupled with a sleek user interface to provide traders with millisecond latency and zero gas fee transactions. Leveraging the most advanced low-latency ZK-STARK technology on Ethereum, RabbitX delivers a high-speed, highly secure trading environment that supports up to 20x leverage trading, enabling users to trade in global markets in real-time, anytime, anywhere.
In addition to its signature perpetual futures, RabbitX plans to introduce exotic crypto-native derivatives, interest rate, and forex trading in its roadmap. These initiatives aim to offer global traders a broader range of investment options and diversified risk management tools.
Having raised over $10 million in three years, what's next for RabbitX?
Founded in 2021, RabbitX initially launched as Strips Finance, a decentralized interest rate swap exchange on Arbitrum. As its mission and vision expanded, RabbitX quickly evolved and rebranded in May 2022, focusing on building a comprehensive derivatives platform for global asset classes.
RabbitX boasts a seasoned team, including skilled developers, experienced derivatives traders, and multi-billion-dollar portfolio managers. From the outset, the team has adhered to a first-principles approach to product development, emphasizing a robust risk engine and trader-centric design. Thanks to its innovation and growth potential, RabbitX has garnered support from some of the world's top investors, including Sequoia Capital.
On January 31, 2023, RabbitX, a decentralized contract trading platform based on StarkNet, officially launched its testnet, offering users a fast and zero gas fee trading experience. Subsequently, in February 2023, RabbitX initiated its mainnet rollout in four phases. The first phase of the mainnet was open only to invitees, with invitations distributed through the RabbitX Discord.
As part of Strips Finance, RabbitX has received significant financial support throughout its development journey. In mid-2021, Strips Finance raised $2.5 million in a seed round led by Crypto.com Capital, Finlink Capital, and Mechanism Capital. Later that year, they successfully raised another $8.5 million, led by Multicoin Capital with participation from Sequoia Capital India, Fabric Ventures, and Morningstar Capital, laying a solid foundation for future growth.
A Glimpse into RabbitX's Token Allocation Model: Understanding Investor Benefits
RabbitX, built on Starknet, is a permissionless perpetual exchange that provides a fast and secure derivatives trading platform for global traders. Through RabbitX, users can trade using an order book and leverage up to 20x.
RabbitX employs low-latency ZK-STARK technology, allowing for extremely fast trade confirmations with zero gas fees. As a Starknet-based application, RabbitX combines the efficiency of off-chain order books with the security of on-chain settlement, achieving millisecond latency, which is 50 times faster than other on-chain derivatives platforms. Starknet, as a Layer 2 network on Ethereum, ensures high scalability while inheriting the full security of Ethereum Layer 1, preventing any fraudulent transactions.
RabbitX has designed a meticulous liquidation mechanism to ensure safe and stable trading. Its margin requirements include a maintenance margin (3%) and a liquidation margin (2%), and it uses a three-step waterfall structure for liquidation: if an account's equity falls below the maintenance margin requirement, partial liquidation will occur until the account recovers above the required level; if equity drops below the liquidation margin, the account will be liquidated at zero price; finally, if the insurance fund equity falls below zero, opposing positions will be automatically reduced.
The RabbitX utility token RBX has an initial supply of 1 billion tokens and is already listed for trading. The token allocation includes 32.5% for community rewards, 7.5% for liquidity mining rewards, 20% for the treasury, 20% for investors, 15% for the current team, 3% for future team members, and 2% for advisors.
As an independently operated trading platform, RabbitX is not affiliated with any market makers, ensuring a fair and transparent trading environment. Users can trade with confidence as RabbitX will never front-run orders. Additionally, RabbitX charges no gas fees and supports real-time order placement, including limit orders, market orders, and stop orders, providing users with a convenient and efficient trading experience.
Enhancing Ecosystem Liquidity with Fusion AMM in Collaboration with Elixir Protocol
On February 7, 2024, RabbitX partnered with DeFi protocol Elixir Protocol to launch Fusion AMM (FAMM), marking a significant step forward in liquidity provision and capital appreciation.
Fusion AMM (FAMM) is RabbitX's latest introduction on Starknet, offering users a way to provide liquidity without the need for professional market makers (MM). Through the partnership with Elixir, FAMM allows users to deposit funds in the form of USDT collateral and leverage Elixir's sophisticated automated strategies to trade on RabbitX's order book. This mechanism not only offers users the potential for passive income but also ensures that funds are actively managed like those of professional market makers, without the need for users to directly engage in trading and liquidity management.
In traditional order book (OB) trading, professional market makers maintain market efficiency and execution quality through active liquidity management. However, in DeFi, market makers face challenges related to technology, capital, and time costs. The emergence of FAMM bridges this gap by providing users with an automated strategy to passively participate in liquidity provisioning on RabbitX’s order book.
As a reward for using FAMM, users will receive RBX tokens. These rewards amount to 2.5% of the total RBX supply, distributed weekly to FAMM stakers. The rewards will be weighted across all current and future markets on RabbitX, based on the amount and duration of the stake. This means that users who stake more and for longer periods will receive more RBX rewards. This mechanism will be continuously optimized and enhanced as the RBX staking option evolves.
With the launch of Fusion AMM, RabbitX once again demonstrates its innovation and technological prowess in the decentralized trading space. Users can participate in liquidity provisioning on RabbitX’s order book through FAMM and earn stable passive income without needing professional knowledge or substantial capital. This not only brings greater liquidity to the market but also enhances RabbitX’s importance and competitiveness in the DeFi ecosystem.
