Margined Protocol #7
Description
Project Name
Margined Protocol
Team Name
Margined Protocol
Payment Address
secret1d9uwvv4w4n8yfnng8enl643vml4xwke6hp860y
Project Description
Margined Protocol is creating margin trading products for CosmWasm Cosmos zones.
Problem / Solution
Perpetual swaps are a core DeFi protocol. They allow users to hedge risks and express market sentiments. Furthermore they are one of the most popular DeFi protocols with, $1.6bn total volume on Solana; $17bn total volume on Ethereum; and over $84bn traded on CEXs. More specifically protocols such as dYdX (with $475m in TVL) and GMX.io (with $376m in TVL).
However, in the Cosmos eco-system there is only DyDx with it's own AppChain.
Cosmos is therefore missing a completely decentralised and on-chain perpetuals protocol, such as Margined Protocol where by deploying to Cosmos zones directly and listing perps for the native token we allow users to enter positions on the chain where the most activity occurs.
Detailed Product Description:
Margined Protocol uses a margin engine to manage user's positions which they are able to take using a vAMM for price discovery. The vAMM does not hold any real assets in it, rather it holds virtual liquidity using a constant product function to move the price as users take long and short positions.
Should user's margin become insufficient then they can be liquidated.
To incentivise a balanced book and that the vAMM tracks the oracle the users pay a funding rate at hourly intervals depending on how much the price has skewed from the pricefeeds.
Already Completed
- v0 deployed on Juno testnet with 8000+ unique account interactions, i.e. going long or short.
- v0 contracts fully audited.
Grant Deliverables
- Contract Acceptance
- Deployment of v0 contracts on Secret Network
Go-to-Market Plan
- Deploy v0 contracts
- Continue upgrading contracts as development happens
Value capture for Secret Network Ecosystem
Secret Network will benefit through this deployment in many ways including:
- Growing TVL and Users for the Network through Margined Protocol
- Growing TVL and Users for complimentary products such as AMMs and Lending as individuals can now hedge their positions
- An increase in the breadth of primitives available within Secret Network's private DeFi suite
- Access to other communities within the Cosmos ecosystem such as Juno and Archway who will also deployments and could be attracted to private implementations of the Protocol
Team Website
Team Code Repos
Development Roadmap
- deploy v0 contracts
- develop v1 contracts, including interchain governance and improved price discovery and liquidity
- develop additional margin trading products such as interest rate swaps
The Future and Our Commitment to Secret Network
- deploy all continued upgrades and products from Margined Protocol to the Secret Network
Additional Information
N/A