In early July this year, the decentralized derivatives exchange SynFutures announced the launch of Base. Within just three months, SynFutures has quickly risen to become the number one player in the Base derivatives market, occupying half of the Base derivatives market share in Q3, once again attracting great attention from the market!
What are the innovations of SynFutures?
How to attract users through incentive programs, and what are the recent ways to participate? This article by BlockTempo will elaborate on the core advantages, project progress and participation methods of SynFutures.
SynFutures was launched at the end of 2021 and started to gain momentum in the first half of this year. Relying on its pioneering permissionless contract market model, it allows anyone to add liquidity in 30 seconds by single-token, supporting perpetual contracts and expiration contracts, bringing users an ultimate experience.
In addition, SynFutures has a keen market sense, focusing on developing the Blast and Base ecosystems, and has successfully taken a leading position in both networks.
Since the launch of Blast in March and Base in July this year, the trading volume has cumulatively exceeded $180 billion, with nearly 300,000 unique addresses having traded on SynFutures.
Currently, it supports over 45 trading pairs, including mainstream coins like BTC and ETH, as well as the hot MEME track and the US election prediction market that have been on fire this year, truly returning the decision-making power of DeFi contract listing to the community.
01 Project Innovation: Oyster AMM
Derivatives trading platforms face a series of problems: the simplicity of traditional AMMs allows everyone to list tokens and provide liquidity, but there is a sacrifice in capital efficiency.
The order book model maximizes capital efficiency, but it cannot support arbitrary risk assets. Based on its proprietary Oyster AMM (oAMM), SynFutures has organically combined full-chain matching, full-chain order book, and AMM, reconciling the high capital efficiency of CeFi and the permissionless and decentralized nature of DeFi, perfectly solving the above problems.
SynFutures' contracts have already been audited by QuantStamp.
Oyster AMM (oAMM), as the core of SynFutures, has three features: concentrated liquidity, full-chain order book enabled AMM, and protective user stabilization mechanism.
1.1 Concentrated Liquidity
In the oAMM, liquidity can be concentrated within a specific price range (similar to UniSwap V3), increasing the capital efficiency in that price range, allowing capital to be concentrated to support transactions within that range, rather than being dispersed across the entire price range.
In addition, oAMM also supports the addition of single-sided liquidity, where liquidity providers only need to provide one type of token to participate in the market's liquidity provision, lowering the participation threshold and token risk.
oAMM achieves concentrated liquidity and allows single-sided liquidity addition through the following mechanisms:
- Concentrated liquidity range: oAMM allows liquidity providers to concentrate their funds within a specific price range. This means that LPs can choose to provide liquidity in the price range they believe is most likely to see trading activity, rather than the entire price range (similar to UniSwap V3).
- Utilizing virtual positions to simulate the trading process: In the oAMM model, when LPs provide liquidity (using the ETH-USDC trading pair as an example, when only USDC is provided), the system will create a corresponding virtual position in the background. This virtual position represents the position relative to the other asset (in this example, ETH). This method allows for single-sided liquidity provision while maintaining market balance.
1.2 Full-Chain Order Book Enabled AMM
The combination of full-chain order book and AMM is one of the important features of the oAMM model. "Full-chain" ensures the decentralization and security of transactions, while "order book" further empowers the AMM, providing extreme liquidity depth and optimizing the user experience.
The full-chain order book refers to the fact that all trading orders (buy and sell orders) are recorded and stored on the blockchain, and the matching between buy and sell orders is also done on-chain, rather than on a traditional centralized server or partially centralized system.
- Clever implementation of the order book: oAMM allows users to provide liquidity at specified price points, thereby realizing on-chain limit orders and simulating order book trading behavior, further improving capital efficiency. Unlike off-chain order books such as dYdX, oAMM is a smart contract deployed on the blockchain, with all data stored on-chain, allowing anyone to verify it, completely decentralized, and users do not need to worry about issues such as dark pool operations or fake trades on the trading platform.
- Extreme liquidity depth: There are not a few AMMs on the market that realize concentrated liquidity, such as Uniswap V3, etc. The concentration of liquidity has improved capital efficiency, but it also puts higher demands on the liquidity depth of the concentration points. Compared to the traditional AMM market making method, market makers on centralized trading platforms are more familiar with and have a higher awareness of the limit order market making method, and are also more willing to participate in it. Therefore, oAMM that supports limit orders can better attract market makers to participate in active market making, further improving the trading efficiency and trading depth of oAMM, achieving a trading experience comparable to centralized trading platforms.
In summary, oAMM cleverly combines the full-chain order book with AMM, implementing the liquidity problem that is most difficult to solve for exchanges on-chain, while also having the advantage of on-chain transaction transparency, truly combining the advantages of DEX and CEX.
1.3 Protective Stabilization Mechanism for Users
SynFutures has also designed a set of mechanisms aimed at maintaining market stability and protecting user interests. These mechanisms ensure a healthy and fair trading environment by preventing extreme market volatility and reducing unnecessary risks.
- Dynamic penalty fee: To prevent price manipulation and extreme market volatility, oAMM introduces a dynamic penalty fee mechanism. When a transaction causes the market price to deviate from the mark price beyond a certain threshold, an additional fee will be charged for that transaction. This fee increases as the price difference increases, thereby suppressing potential manipulation behavior.
- Stable mark price: oAMM uses algorithms such as exponential moving average (EMA) to smooth market prices, reducing the risk of forced liquidation caused by short-term volatility due to sudden news or market manipulation. A stable mark price helps prevent unnecessary liquidation triggered by extreme price changes.
Through this series of mechanisms, SynFutures imposes costs on manipulative behavior, reducing the incentive to manipulate the market; at the same time, the price smoothing mechanism reduces the market's overreaction to sudden events or large-scale transactions, protecting users from unnecessary losses; in addition, SynFutures also reduces the risk of unexpected liquidation caused by violent price fluctuations through a stable mark price and continuous funding rate, further enhancing user protection and effectively maintaining the market stability of the oAMM model.
02 Project Progress
2.1 Firmly Rooted in the Blast Ecosystem, Rewarding Users
Since the launch of Blast just a few months ago, SynFutures has already firmly established its position as the first derivative trading platform in the Blast ecosystem. While providing users with an ultimate experience, it has also provided users with a generous incentive program, realizing user growth and retention.
At the initial launch of Blast, SynFutures announced the introduction of the O_O (Oyster Odyssey) point incentive program. SynFutures not only provides future airdrop opportunities of its own SynFutures to O_O point holders, but also 100% rewards all incentive measures related to Blast (including points, yield, and additional developer token airdrops) to users.
Through a trading competition with a prize pool of up to $500,000 and three airdrop opportunities, SynFutures has provided users with strong motivation and rewards to participate.
In the Blast activities, Blast users, dYdX/GMX users, and Pudgy Penguin NFT users can directly receive the SynFutures O_O point airdrop by registering for the O_O activity on the first day of SynFutures' launch.
In addition, providing liquidity (including maker and AMM LP) and trading (taker) can also earn Blast native token point rewards +50% Blast Big Bang Winner airdrop rewards + SynFutures O_O point rewards, and traders can also receive additional trading competition rewards.
Users who have participated in the SynFutures Blast activities have expressed that they have reaped a lot. Currently, the O_O incentive program has also been synchronized to support the Base network, and users can earn point rewards by trading and providing LP on the Base network.
2.2 Empowering the Base Ecosystem, Growth and Innovation
SynFutures announced the launch on the Base network in early July this year, and by the end of September, SynFutures has already occupied an absolute leading position in the Base derivatives market, accounting for about 50% of the Base derivatives market share in Q3.
At the same time, SynFutures also announced the launch of the Vault product line on Base at the end of September, where users can provide single-currency liquidity to earn liquidity rewards, platform trading fees, and O_O point rewards. The operation mechanism and features of the Vault are as follows:
- Deposit and management of funds: Users can deposit funds into the Vault, and the Vault will automatically provide liquidity and rebalancing operations in the corresponding market for them, and can also synchronously obtain point rewards.
- Simplified market making process: The Vault automatically executes the market making strategy, which is simpler than doing it yourself and does not require frequent manual operations.
- Risk diversification: By using different Vaults, users can allocate liquidity to different assets, thereby diversifying their investment portfolio and reducing concentrated risk.
Source: https://oyster.synfutures.com/#/vault/base/0x152d6356da0b84eb796247b03b3a17a791d83c42
Similar to the point activities on Blast, providing LP and trading can also earn O_O point rewards, and with the launch of Vault, users now have an easier way to generate asset income through SynFtures and earn O_O point rewards.
Furthermore, more ways to earn points can be found on the SynFutures activity interface, showing SynFutures' sincere efforts to reward users.
Source: https://oyster.synfutures.com/#/campaign
In the current activities, SynFutures also provides a points page to encourage users to participate in rankings, bringing more fun.
Source: https://oyster.synfutures.com/#/odyssey
Here is the English translation of the text, with the specified terms retained and not translated: From the chain data, it can be seen that Base is gradually becoming the growth engine of SynFutures, demonstrating SynFutures' flexible market adaptability, and also indirectly confirming the recognition of SynFutures' product experience and incentive program by Base users.
Source: https://info.synfutures.com/
### 03 Core Advantages and Competitor Comparison
#### 3.1 Market Position
Currently, several derivative trading platforms have occupied a certain market position, such as dYdX, Hyperliquid, and GMX.
Observing the performance of major derivative platforms on the chain through the Derivatives Volume of defillama since March, in the period of 3-9 months, Hyperliquid and dYdX maintained a leading position in derivatives trading volume, basically maintaining a daily trading volume of around $1.5 billion, SynFutures was able to achieve a daily trading volume of around $1 billion, leading players such as Jupiter and GMX, and is in the first echelon of the derivatives track.
Since September, due to market reasons, the trading volume of most derivative platforms has declined, with Hyperliquid still occupying the first place with a trading volume of around $1.5 billion, while SynFutures has surpassed dYdX with a trading volume of around $600 million.
As the derivative platform with the shortest launch time among them, SynFutures has quickly gained its current market position, indicating that it has already gained full market recognition.
SynFutures V3 Derivatives Trading Volume, Source: https://defillama.com/protocol/synfutures
GMX Derivatives Trading Volume, Source: https://defillama.com/protocol/gmx?volume=true
dYdX Derivatives Trading Volume, Source: https://defillama.com/protocol/dydx
Jupiter Perpetual Exchange Derivatives Trading Volume, Source: https://defillama.com/protocol/jupiter-perpetual-exchange
Hyperliquid Derivatives Trading Volume, Source: https://defillama.com/protocol/hyperliquid?derivativesVolume=true
#### 3.2 Core Advantages
SynFutures has been able to achieve outstanding results in a short period of time, which is inseparable from its unique advantages:
- Hybrid model of on-chain order book + AMM, with decentralization, deep liquidity, and capital efficiency: dYdX and Hyperliquid rely solely on order books, with high capital efficiency, but this limits the diversity of trading assets; while the pool-to-pool model used by GMX is constrained by the bottleneck of LPs in trading volume, lacking scalability, and the diversity of trading assets is also limited; SynFutures combines on-chain order books and AMM, with the decentralization and deep liquidity of DEXs, and the capital efficiency close to CEXs.
- Community-owned token listing: The trading assets of other derivative trading platforms are basically centralized decisions, while SynFutures allows the community to decide on the listing of assets, and can realize 30-second permissionless listing; in the recent MEME craze, SynFutures quickly realized the listing of $BOME, leading the market rhythm.
- Support for any ERC-20 token as margin: SynFutures supports any ERC-20 token as margin for trading, while other platforms only support limited currencies such as USDC and ETH.
- Full on-chain order matching: SynFutures places the order matching completely on-chain, ensuring the transparency of transactions and preventing market manipulation; while competitors like dYdX and Hyperliquid perform matching off-chain, still with potential centralized risks.
- Airdrop and token issuance expectations: SynFutures V3 is currently focused on the Blast and Base ecosystems, providing users with deposit yields, point-based incentives, and chain-related airdrops in various ways, which are not available on other platforms like dYdX and Hyperliquid. In addition, SynFutures is one of the few leading derivative trading platforms that have not yet issued tokens, and the team has stated that they are researching token issuance, hinting at future token issuance and airdrop plans. For users of the previous version of SynFutures and participants in past activities, the official has stated that there will also be corresponding rewards in the future.
Source: https://www.synfutures.com/
### 04 Team and Background
The founding team of SynFutures has backgrounds in top international investment banks, internet companies, and crypto OGs, and has gained the favor of investors including Pantera, Polychain, Standard Crypto, Dragonfly, Framework, SIG, Hashkey, IOSG, Bybit, Wintermute, CMS, and Woo, with total funding exceeding $38 million.
Source: https://www.rootdata.com/Projects/detail/SynFutures?k=MzAyMA%3D%3D
### 05 Summary and Outlook
In the fierce competition in the decentralized finance (DeFi) derivatives market, SynFutures has stood out significantly with its innovative technology and strategies.
By introducing a fully on-chain order book and matching mechanism, a unified liquidity model, and a focus on user protection stability mechanisms, SynFutures not only provides users with a secure, transparent, and efficient trading environment, but also ensures its competitiveness and attractiveness in the industry.
Furthermore, through generous incentive programs and deep investment in the Blast and Base ecosystems, SynFutures has demonstrated its commitment to long-term development and ecosystem building.
Abundant airdrop rewards, trading competitions, and continuous innovation of products like Vault have not only attracted a large number of active users, but also injected new vitality into the market. This feedback to users and ecosystem partners has strengthened the connection between SynFutures and its users and ecosystem, promoting the sustained prosperity of its ecosystem.Through technological innovation, user protection mechanisms, incentive strategies, and a clear future plan, SynFutures has successfully built a secure, reliable, and vibrant trading platform. These advantages not only meet the current needs of users, but also anticipate and adapt to future market changes, indicating its continued leadership in the decentralized trading platform domain.
Risk warning: The above is for information sharing only, not investment advice. Please follow the laws and regulations of your local jurisdiction.
