Each token represents a portion or all of the commodity, making it easier to divide and trade. This simplifies the buying and selling of small portions of commodities for investors, provides more liquidity, and provides access to markets that are often difficult to trade.

Each token represents a portion or all of the commodity, making it easier to divide and trade. This simplifies the buying and selling of small portions of commodities for investors, provides more liquidity, and provides access to markets that are often difficult to trade.

Due to the reliance on passive liquidity, it is difficult to achieve sustainability in AMM-based perpetual trading. Liquidity pools act as counterparties, requiring long and short positions to be balanced to avoid market risk. Once there is an imbalance, such as over-longing, if the price moves in the opposite direction, the pool will face losses. In order to rebalance and manage the risk of LPs (liquidity providers), the protocol adjusts fees or funding rates. This means that the protocol mu...

Due to the reliance on passive liquidity, it is difficult to achieve sustainability in AMM-based perpetual trading. Liquidity pools act as counterparties, requiring long and short positions to be balanced to avoid market risk. Once there is an imbalance, such as over-longing, if the price moves in the opposite direction, the pool will face losses. In order to rebalance and manage the risk of LPs (liquidity providers), the protocol adjusts fees or funding rates. This means that the protocol mu...