Decentralized gamified platform for trading derivatives on: crypto, commodity, stock or forex
Tsunami ExchangeToward Tsunami 2.0. Liquidity provision
Hello everyone! In this article, we will tell you about the new liquidity provision model and why liquidity providers at Tsunami will receive one of the biggest rewards among the entire Waves ecosystem. Enjoy reading!For three weeks, our team has been working with the community to test the second version of the Tsunami Exchange protocol. We are almost ready to launch the upgraded product, and the first and main step on the way to success is liquidity provision.What is liquidity provision?The ...
Tsunami ExchangeLiquidity Mining on Tsunami
One of the most important characteristics of an exchange is trading volume. Trading volume provides asset liquidity, lower spreads and in general more attractive and dynamic trading experience for traders. Shortage of liquidity is a well known problem, that affects most of AMM exchanges to some degree. With that in mind, to provide Tsunami users with the best possible trading experience, we are happy to announce a liquidity mining program!Tokenomics update and Token BurnRecently, we’ve extrac...
Tsunami ExchangeTsunami Exchange - easy peasy futures squeezy
Hello friends, as many users of the Waves ecosystem know, just recently the first futures trading platform was born in it, one which many experienced traders on the Waves Exchange has been missing so much. Today, we will talk about what this platform is, how to use it correctly, and what pitfalls you should pay attention for so that not to lose your deposit at the first use. So, Tsunami Exchange - easier than is looks, let's go! 🚀What are futures and how to make money on them?Before we ...
Tsunami ExchangeToward Tsunami 2.0. Liquidity provision
Hello everyone! In this article, we will tell you about the new liquidity provision model and why liquidity providers at Tsunami will receive one of the biggest rewards among the entire Waves ecosystem. Enjoy reading!For three weeks, our team has been working with the community to test the second version of the Tsunami Exchange protocol. We are almost ready to launch the upgraded product, and the first and main step on the way to success is liquidity provision.What is liquidity provision?The ...
Tsunami ExchangeLiquidity Mining on Tsunami
One of the most important characteristics of an exchange is trading volume. Trading volume provides asset liquidity, lower spreads and in general more attractive and dynamic trading experience for traders. Shortage of liquidity is a well known problem, that affects most of AMM exchanges to some degree. With that in mind, to provide Tsunami users with the best possible trading experience, we are happy to announce a liquidity mining program!Tokenomics update and Token BurnRecently, we’ve extrac...
Tsunami ExchangeTsunami Exchange - easy peasy futures squeezy
Hello friends, as many users of the Waves ecosystem know, just recently the first futures trading platform was born in it, one which many experienced traders on the Waves Exchange has been missing so much. Today, we will talk about what this platform is, how to use it correctly, and what pitfalls you should pay attention for so that not to lose your deposit at the first use. So, Tsunami Exchange - easier than is looks, let's go! 🚀What are futures and how to make money on them?Before we ...
Decentralized gamified platform for trading derivatives on: crypto, commodity, stock or forex
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Futures trading allows you to trade with leverage, which increases both potential profits and losses. Leveraged trading is a high-risk activity, with the possibility of being liquidated.
When trading on futures exchanges, it is not uncommon to encounter sharp price changes that result in liquidation of users' open positions. Liquidation is a mechanism used to close positions that are unable to maintain minimum margin requirements.
Previously, the Margin Ratio, at which the complete liquidation of the users' position took place, was 8%. This means that if the Margin Ratio falls below 8%, the user's position is liquidated, leaving a deposit in vAMM as profit for traders who opened positions in the opposite direction.
Recall that the Margin Ratio is calculated using the following formula:
So that users could trade without fear of losing their positions entirely, we introduce a method of partial liquidation.
Partial liquidation - a process in which if the Margin Ratio falls below 8%, the users' position will not be liquidated completely, but only that part of it, which will be enough to restore the Margin Ratio to the level above 8%.
The liquidation quantum, that is, the minimum step of liquidation of a part of the position will be 15%. This means that at one time can be liquidated at least 15% of the current volume of open positions. If the Margin Ratio of your position falls to 1% and below, the position will be liquidated as a whole.
With the implementation of the partial liquidation mechanism, traders' funds remain safe for as long as possible, which helps make trading on the Tsunami Exchange more comfortable and reduces the risk of losses for our users.
Partial liquidation allows you to avoid sharp price fluctuations due to the one-time liquidation of large positions, which also has a positive impact on the fundamentals of traders with positions in the same direction.
We strive to make Tsunami the best futures trading platform in the DeFi world of the Waves ecosystem, we care about our traders and want to achieve the highest level of convenience when trading on Tsunami!
Futures trading allows you to trade with leverage, which increases both potential profits and losses. Leveraged trading is a high-risk activity, with the possibility of being liquidated.
When trading on futures exchanges, it is not uncommon to encounter sharp price changes that result in liquidation of users' open positions. Liquidation is a mechanism used to close positions that are unable to maintain minimum margin requirements.
Previously, the Margin Ratio, at which the complete liquidation of the users' position took place, was 8%. This means that if the Margin Ratio falls below 8%, the user's position is liquidated, leaving a deposit in vAMM as profit for traders who opened positions in the opposite direction.
Recall that the Margin Ratio is calculated using the following formula:
So that users could trade without fear of losing their positions entirely, we introduce a method of partial liquidation.
Partial liquidation - a process in which if the Margin Ratio falls below 8%, the users' position will not be liquidated completely, but only that part of it, which will be enough to restore the Margin Ratio to the level above 8%.
The liquidation quantum, that is, the minimum step of liquidation of a part of the position will be 15%. This means that at one time can be liquidated at least 15% of the current volume of open positions. If the Margin Ratio of your position falls to 1% and below, the position will be liquidated as a whole.
With the implementation of the partial liquidation mechanism, traders' funds remain safe for as long as possible, which helps make trading on the Tsunami Exchange more comfortable and reduces the risk of losses for our users.
Partial liquidation allows you to avoid sharp price fluctuations due to the one-time liquidation of large positions, which also has a positive impact on the fundamentals of traders with positions in the same direction.
We strive to make Tsunami the best futures trading platform in the DeFi world of the Waves ecosystem, we care about our traders and want to achieve the highest level of convenience when trading on Tsunami!
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