# Rage Trade, the first omnichain $ETH perp swap By [Bee926](https://paragraph.com/@bee926) · 2022-09-19 --- 《Twitter🧵》 1/17 ❓What's better than earning the already juicy [$GLP](https://twitter.com/search?q=%24GLP&src=cashtag_click) yield on [@GMX\_IO](https://twitter.com/GMX_IO)? 💡Earn more yield on top w/ 0 liquidation risks! ❓How? 💡By depositing into [@rage\_trade](https://twitter.com/rage_trade)'s 80/20 recycled GMX LP vault What⁉🤔 I read the doc so you don't have to😁, my tldr👇 * * * 2/17 In this🧵 📌What is [@rage\_trade](https://twitter.com/rage_trade) in a nutshell? 📌What problems is it trying to solve? and how? 📌Advantages of Rage's unique design 📌👀Coming 🔜 📌Possible⚠Risks * * * 3/17 📌What is [@rage\_trade](https://twitter.com/rage_trade) in a nutshell? [@rage\_trade](https://twitter.com/rage_trade) is a ETH perp swap, up to 10x leverage powered by UNI v3; however, what's most unique about it is that it has 👀huge ambitions. It wants to be: ✅the most Liquid, ✅composable, ✅and the first ETH omnichain perp swap * * * 4/17 ❓How will [@rage\_trade](https://twitter.com/rage_trade) accomplish the above👆 💡Primarily through its features of: 1️⃣Omnichain 'recycled' liquidity 2️⃣80/20 vault LP mechanism Let's explore each of the above features * * * 5/17 1️⃣Omnichain 'recycled' liquidity: One of the major challenges faced by perp and structured products in crypto is the lack of liquidity because of how fragmented liquidity is across many chains and protocols. * * * 6/17 [@rage\_trade](https://twitter.com/rage_trade) plans to solve the liquidity problems through bridging ETH+USD LP shares from protocols on any chains that are [@LayerZero\_Labs](https://twitter.com/LayerZero_Labs) compatible and then ‘recycle’ & unify them into their 80-20 vaults👇 ![](https://storage.googleapis.com/papyrus_images/a72c0a349659da132b47ae003c078a595d330cad2160382251d5ad2191c7fd48.png) * * * 7/17 2️⃣80/20vault LP mechanism The LP shares that come into [@rage\_trade](https://twitter.com/rage_trade) will be divided into: 🔸(At least)80% in Yield Protocol Pool (continues to earn LP💰from external protocols) 🔸(At most) 20% to provide [@rage\_trade](https://twitter.com/rage_trade) perp concentrated liquidity(earns additional Rage fees) * * * 8/17 The 80/20 vaults will update LP range & rebalance pools daily, and if necessary reset when there’s more than 20% of vault value in Rage perp position in order to manage risks 👇 For detailed info, check the doc 🔗[https://docs.rage.trade/operations](https://docs.rage.trade/operations) ![](https://storage.googleapis.com/papyrus_images/923bd38a8d136281724423fe2d18980c4c8d583092bad0bb0fe5357cd3f96190.png) * * * 9/17 📌Advantages of Rage's unique design 1️⃣Capital Efficiency with 0 liquidation risks: Normally for users to generate additional yield for their LP positions, they must borrow against their LP tokens and redeploy borrowed assets; however, this action carries liquidation risks. * * * 10/17 [@rage\_trade](https://twitter.com/rage_trade) natively accepts LP share tokens as collaterals with 0 liquidation risks. 🚨 Leveraged perp trading still carries liquidation risks🚨 * * * 11/17 💡In the case of the Rage 80/20 [@GMX\_IO](https://twitter.com/GMX_IO) vault LP, if you deposit [$GLP](https://twitter.com/search?q=%24GLP&src=cashtag_click), you will earn💰yield from both [@GMX\_IO](https://twitter.com/GMX_IO) & [@rage\_trade](https://twitter.com/rage_trade)，and don’t have to worry about liquidations🦾 * * * 12/17 2️⃣Combining ETH+USD liquidity across multiple protocols and chains will create ultra deep liquidity, which benefits traders and also allows for protocols (ie Options protocol products like [@dopex\_io](https://twitter.com/dopex_io)'s Atlantics Straddles)and whales to delta hedge properly using perps. * * * 13/17 3️⃣The 'Forward Guidance' mechanism will allow Rage's multisig to manually match its funding rates to CEX's rates 💡Imaging any stablecoin protocols, for example [@fraxfinance](https://twitter.com/fraxfinance) and [@UXDProtocol](https://twitter.com/UXDProtocol) being able to open delta neutral positions using Rage's ETH perps 4️⃣Also👀👇 ![](https://storage.googleapis.com/papyrus_images/476038f80195f00d845092f5ea48f6964637c84793748122bb8f0d5450c6ae0a.png) * * * 14/17 📌More to come🔜 🔸Automated [$GLP](https://twitter.com/search?q=%24GLP&src=cashtag_click) delta neutral LP'ing 🔸Other Recycled LP vaults such as SLP, Uniswap, Curve Tricrypto, etc 🔸Omnichain vaults compatible with protocols like [@CurveFinance](https://twitter.com/CurveFinance)，[@AaveAave](https://twitter.com/AaveAave), [@balancer](https://twitter.com/Balancer) and [@SushiSwap](https://twitter.com/SushiSwap) * * * 15/17 📌Possible⚠risks 🔸Rage vaults can still underperform b/c of IL. Better for bear🐻 & crab🦀 markets (in [$GLP](https://twitter.com/search?q=%24GLP&src=cashtag_click)'s case) 🔸Arbitrum (where the vaults and [@rage\_trade](https://twitter.com/rage_trade) platform live) down time can affect yield 🔸Smart contract risks because it's a brand new protocol 🔸Omnichain risks * * * 16/17 If you'd like to try out [@rage\_trade](https://twitter.com/rage_trade), the testnet is live with test token faucet right on the app itself. UI is great👍 If you want to understand more about the mechanisms behind the scene, join Discord and chat with the team directly Discord🔗[https://discord.com/invite/KwRdc7jKeQ](https://discord.com/invite/KwRdc7jKeQ) ![](https://storage.googleapis.com/papyrus_images/c027de86d09c57dc4e7256f69d6d97770f1c2c649fbe01d46e8ba95080034d4a.png) * * * 17/17 [@rage\_trade](https://twitter.com/rage_trade) is innovative with ambitious plans. I'm super excited to follow their development. Sneak peak article on GMX Recycled Liquidity Vault: 🔗[https://medium.com/@ragetrade/sneak-peak-rage-gmx-recycled-liquiditywhat-is-rages-80-20-recycled-gmx-vault-68bdaec041f0](https://medium.com/@ragetrade/sneak-peak-rage-gmx-recycled-liquiditywhat-is-rages-80-20-recycled-gmx-vault-68bdaec041f0) --- *Originally published on [Bee926](https://paragraph.com/@bee926/rage-trade-the-first-omnichain-eth-perp-swap)*