Starting today, I started to make my own blockchain investment research notes. I will introduce the interesting and good projects that I have participated in here

The first concern is decentralized derivatives.(1) Order book vs. AMMThis year, decentralized derivatives exploded. The essential competition is the competition between order book and AMM. Its representative projects are dydx and perp.To briefly explain the difference between the two, the order book is the method used by traditional CEX, and the order book mechanism is used to determine the fair price of assets. The person in charge of pending orders is called a market maker, who buys when the market is surplus and sells when the market is surplus to provide liquidity. Professional institutions generally play this role. The order book follows the sorting rule of “the highest price, first come, first come”, but the sorting power of the blockchain is in the hands of the miners, and the miners can put the pending orders that are beneficial to themselves in the top position; AMM is also known as automated market maker , Realizing automatic market making through user-provided liquidity (LP) is currently the most influential mechanism in the DeFi field. Since there is no pending order, AMM does not need to make market and can be traded regardless of market liquidity. But there are also two friction costs that come with it: slippage and impermanence loss.In summary, the advantage of the order book lies in transaction volume, while the advantage of AMM lies in decentralization. In my opinion, there is no solution for the best of both worlds in the market.

(2) An interesting discovery-sAMM

At the end of June, I saw the news about the Series A financing of the decentralized derivatives exchange SynFutures for the first time. Out of curiosity, I studied this project and found that there are many highlights:SynFutures uses a model called sAMM (Synthetic Automated Market Maker). Liquidity providers only need to provide liquidity in a single currency, and sAMM will automatically synthesize half of the funds into a long futures contract in another currency. At the same time, sAMM will also establish equal short futures contracts for users. In this way, for liquidity providers, whether it is to increase liquidity or withdraw liquidity, there will be no losses due to price fluctuations, because single currency risks are hedged.Another point is that SynFutures allows liquidity providers to create any new futures trading pairs, based on BTC, gold, hash rate and real-world assets and other assets to carry out long or short leveraged transactions. When unlicensed listing becomes possible, nft and others are more capable The assets of the imagination space may become part of the transaction, which is so interesting.

Although decentralized derivatives are still in the early stage, although there is a large number of orders, with the development of L2, I think the SynFutures project has great potential.

Starting today, I started to make my own blockchain investment research notes. I will introduce the interesting and good projects that I have participated in here

The first concern is decentralized derivatives.(1) Order book vs. AMMThis year, decentralized derivatives exploded. The essential competition is the competition between order book and AMM. Its representative projects are dydx and perp.To briefly explain the difference between the two, the order book is the method used by traditional CEX, and the order book mechanism is used to determine the fair price of assets. The person in charge of pending orders is called a market maker, who buys when the market is surplus and sells when the market is surplus to provide liquidity. Professional institutions generally play this role. The order book follows the sorting rule of “the highest price, first come, first come”, but the sorting power of the blockchain is in the hands of the miners, and the miners can put the pending orders that are beneficial to themselves in the top position; AMM is also known as automated market maker , Realizing automatic market making through user-provided liquidity (LP) is currently the most influential mechanism in the DeFi field. Since there is no pending order, AMM does not need to make market and can be traded regardless of market liquidity. But there are also two friction costs that come with it: slippage and impermanence loss.In summary, the advantage of the order book lies in transaction volume, while the advantage of AMM lies in decentralization. In my opinion, there is no solution for the best of both worlds in the market.

(2) An interesting discovery-sAMM

At the end of June, I saw the news about the Series A financing of the decentralized derivatives exchange SynFutures for the first time. Out of curiosity, I studied this project and found that there are many highlights:SynFutures uses a model called sAMM (Synthetic Automated Market Maker). Liquidity providers only need to provide liquidity in a single currency, and sAMM will automatically synthesize half of the funds into a long futures contract in another currency. At the same time, sAMM will also establish equal short futures contracts for users. In this way, for liquidity providers, whether it is to increase liquidity or withdraw liquidity, there will be no losses due to price fluctuations, because single currency risks are hedged.Another point is that SynFutures allows liquidity providers to create any new futures trading pairs, based on BTC, gold, hash rate and real-world assets and other assets to carry out long or short leveraged transactions. When unlicensed listing becomes possible, nft and others are more capable The assets of the imagination space may become part of the transaction, which is so interesting.

Although decentralized derivatives are still in the early stage, although there is a large number of orders, with the development of L2, I think the SynFutures project has great potential.