Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

The Road to v2

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

Since our private beta launch in November 2022, the NFT market has had one dominant trend: down only. With the top ten blue chips being down over 60% by floor price in 2023, it’s no secret that it’s been a rough year for apes and punks alike. Despite this, we’re confident there are few better times to build and ship in such an exciting space than right now. Our v1 private beta was certainly not exempt from these market conditions – this allowed us to take a step back and look at what exactly went wrong to determine how to best move forward in iterating on the first and top NFT derivatives exchange in crypto.

Taken from @hildobby’s Dune Dashboard

Private Beta (v1) Recap

v1 was launched on November 5th, 2022, for whitelisted users only and ran until sunsetting on July 6th, 2023. During this period, we saw over 2,500 unique wallets trading over half a billion USD in volume – an unprecedented amount for a product of its kind. Given the dominance of bearish sentiment in the NFT space, a vast majority of traders were short for the duration of the beta, with short OI making up over 99% total OI for some collections.

A traditional AMM (like Uniswap v2’s) functions by having liquidity providers supply two tokens in some ratio (xy=k) to back a curve of all possible prices between the two assets. For any given price of one asset, requisite liquidity is available for trading. Our v1 beta employed a virtual AMM model, where the price curve is backed by a single asset ($WETH), used to fill trades at any given price along the curve for the quote asset (an NFT collection’s floor price).

Because of this, profit for traders is realized against the margin of open trades, with long and short traders paying funding rates to each other – with the insurance fund covering any differences when imbalanced. Given that the short OI was so high, the insurance fund was covering a substantial amount of imbalance, and our system was sunset to prevent further damages. No user funds were lost in this process, but any traders with unrealized PnL (uPnL) at sunset will be able to receive total compensation in $vNFTP at a discounted price of $0.063 or 50% of their positive uPnL in $WETH gradually from the v2 insurance fund inflow of taker fees and liquidation fees. You can read more about why we decided to sunset v1 here, and traders can redeem their unrealized PnL here.

Fusion AMM Overview

In order to return with the best and most sustainable product possible for traders, a few critical features needed to be addressed:

1. Accurate mark pricing + lower price impact

2. Balance funding rate payments despite long/short imbalances

3. Providing Liquidity

In a nutshell, we wanted to maintain the benefits of our v1 system (available liquidity, customizable/isolated pool parameters, easy bootstrapping for new markets, permissionless market making) while also addressing the above issues. We believe our new Fusion AMM model is the best way forward.

The fusion AMM consists of a new and improved AMM and a decentralized limit order book (DLOB) to ensure the best of both worlds. The diagram below presents a high-level overview of how the system will function.

Decentralized Limit Order Book (DLOB)

The DLOB helps ensure deep liquidity with low price impact + slippage on trades via limit orders and direct counterparties between takers and makers at a given price, solving a crucial issue from our v1 beta. By having a place for taker orders to rest and be matched as necessary, the entire system becomes more scalable and mitigates the possibility of any LPs or our protocol having to cover significant imbalances between long/short positions. This also helps independent price discovery occur on nftperp – especially when combined with the new AMM.

AMM

The key benefit of an AMM is that it allows for low liquidity pools to be bootstrapped easily. Given the lack of liquidity inherent to NFTs relative to ERC-20s, we wanted to maintain this benefit while improving upon its limitations. The AMM now serves as a liquidity source that can fill in the gaps of the DLOB. Trading directly against an AMM results in slippage and price impact disadvantageous to traders. nftperp v2 picks the best path between orderbook and AMM depending on the size of the market order and liquidity available to achieve the best execution for any given order.

Order Types + Matching Engine

Another critical improvement in v2 will be the addition of new order types. In our v1 beta, market orders were a trader’s only option, creating less than optimal entries/exits and lacking risk management tools. V2 introduces limit, stop-loss, and take-profit order types. These orders are submitted on-chain and then executed off-chain by a network of keeper bots, which are incentivized by increasing keeper fees based on how close the execution price is to the mark price. Normal market and limit orders will incur a 15 bps fee while stop-loss and take-profit orders will incur 20 bps.

The matching engine will route orders differently based on whether it’s a market or limit order. Limit orders will rest on the DLOB until the conditions are met for it to be executed, at which point it will be treated as a market order. Market orders are executed immediately at the best available price provided firstly by resting orders on the DLOB while the rest of the order is filled by the AMM. This ensures optimal execution for users and minimal impact on the AMM.

To better illustrate how a trade is filled, let’s take a look at a quick overview of how the Fusion AMM routes a market order.

Liquidations

Liquidations in nftperp v2 transfer positions from the trader to the liquidator. This comes with a 2.5% liquidation bonus on the notional amount to incentivize liquidators. Post-transfer, some or all of these positions can be closed or held in perpetuity if desired. Accounts can be liquidated so long as the margin ratio is below 6.25%, calculated using the following equation:

Prospective liquidators can learn more and get started via our developer docs.

Insurance Funds

Last but certainly not least, v2 introduces a refined insurance fund model. The fund will be denominated in ETH and can be used to manage any bad debt within the system. LPs can freely deposit into the insurance fund to earn half of all taker fees and half of the leftover value from liquidated positions. This will allow the fund to slowly accrue value, returning value to LPs and serving as a crucial backstop in the few situations it may be needed. LP deposits are locked for 48 hours to ensure stability.

Looking Forward:

The debate of AMM vs. orderbook has long been a prevalent one in the decentralized finance space. At nftperp, a hybrid model is the best way forward to bring out the strengths of both models while compensating for the weaknesses. Our new Fusion AMM is just one implementation of these models, which will help catalyze a breakthrough in trading non-fungible assets.

Along with v2 Alpha comes new opportunities for users to earn and be rewarded for their support and usage of nftperp. More details are coming on how users can benefit from being an early supporter of nftperp. More details can be found in the coming weeks or in the ongoing conversation over on our Discord. Any announcements detailing v2 Alpha launch can be found first on our Twitter.

LayerZero is an interoperability protocol that connects blockchains (50+ and counting), allowing developers to build seamless omnichain applications, tokens, and experiences. The protocol relies on immutable on-chain endpoints, a configurable Security Stack, and a permissionless set of Executors to transfer censorship-resistant messages between chains.

LayerZero enables omnichain development thanks to unified semantics across blockchains. With LayerZero, application owners may define and control their own configurations for security and efficiency.

Base is a secure, low-cost, builder-friendly Ethereum L2 built to bring the next billion users onchain.

Base is incubated within Coinbase and plans to progressively decentralize in the years ahead. We believe that decentralization is critical to creating an open, global cryptoeconomy that is accessible to everyone.

Ethereum L2​

Base is built as an Ethereum L2, with the security, stability, and scalability you need to power your onchain apps. Confidently deploy any EVM codebase and onramp your users and assets from Ethereum L1, Coinbase, and other interoperable chains.

Big features, small fees​

Get the EVM environment at a fraction of the cost. Get early access to Ethereum features like Account Abstraction (ERC4337), simple developer APIs for gasless transactions, and smart contract wallets.

Open source​

Base is built on the MIT-licensed OP Stack, in collaboration with Optimism. We're joining as the second Core Dev team working on the OP Stack to ensure it’s a public good available to everyone.

Scaled by Coinbase​

Base is an easy way for decentralized apps to leverage Coinbase's products and distribution. Seamless Coinbase integrations, easy fiat onramps, and access to millions of verified users in the Coinbase ecosystem.

A guide to depositing your ETH to Zora Network

Updated over a week ago

How do I deposit my ETH on Zora Network?​You can bridge ETH from Ethereum to Zora Network in two ways - from our Bridge Dashboard or the Zora homepage. ​​But wait… what is bridging? Learn more here!​

Bridging your ETH on the Zora Homepage:

1. Connect your Wallet to Zora.co

2. Select the menu in the top right-hand corner. You can view your current Wallet balances on the supported networks from here.

3. Underneath your balances, select the “Deposit” tab.

4. In the space provided, enter the amount you would like to deposit onto Zora Network.

5. Select “Bridge” to finish bridging your ETH to the Zora Network. This will prompt you to accept a gas fee.

6. Confirm the transaction in your wallet. **This can take ~1-2 minutes, depending on how congested the Ethereum mainnet is.

7. Your ETH has been bridged: Once the bridge transaction has been confirmed on L2, your ETH is now available on the Zora Network.

   ​

   🎉 Enjoy! 🎉

Bridging your ETH on zora.energy

1. Navigate to the native bridge at bridge.zora.energy. Note that this is the only native bridge - beware of other sites and third parties claiming to provide bridging services for Zora Network. Learn more about native and third-party bridges here.

2. Connect your wallet by selecting “Connect” in the upper right corner.​

   ​

3. Select "Bridge" or "Instant Bridge". Enter the amount that you would like to deposit onto Zora Network. Please review the amount you are depositing carefully. ​

   1. If you would like to bridge from Optimism, Base or Arbitrum to Zora Network, select "Instant Bridge" and select from the drop-down menu.​

      ​

4. Select “Bridge” to finish bridging your ETH to the Zora Network. This will prompt you to accept a gas fee.

   ​

5. Confirm the transaction in your wallet. **This can take ~1-2 minutes, depending on how congested the Ethereum mainnet is.

   ​

6. Your ETH has been bridged: Once the bridge transaction has been confirmed on L2, your ETH is now available on the Zora Network.

   ​

7. SUCCESS! Your ETH has been deposited. Enjoy!

The ZeroLend ecosystem comprises of various entities and features:

1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

   To know more, read "Account Abstraction"

5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

   To know more, read "Real World Assets"

6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

   The ZeroLend Ecosystem

   The ZeroLend ecosystem comprises of various entities and features:

   1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

   2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

   3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

   4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

      To know more, read "Account Abstraction"

   5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

      To know more, read "Real World Assets"

   6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

      The ZeroLend Ecosystem

      The ZeroLend ecosystem comprises of various entities and features:

      1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

      2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

      3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

      4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

         To know more, read "Account Abstraction"

      5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

         To know more, read "Real World Assets"

      6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

         The ZeroLend Ecosystem

         The ZeroLend ecosystem comprises of various entities and features:

         1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

         2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

         3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

         4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

            To know more, read "Account Abstraction"

         5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

            To know more, read "Real World Assets"

         6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

            The ZeroLend Ecosystem

            The ZeroLend ecosystem comprises of various entities and features:

            1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

            2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

            3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

            4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

               To know more, read "Account Abstraction"

            5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

               To know more, read "Real World Assets"

            6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

               The ZeroLend Ecosystem

               The ZeroLend ecosystem comprises of various entities and features:

               1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

               2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

               3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

               4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

                  To know more, read "Account Abstraction"

               5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

                  To know more, read "Real World Assets"

               6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

                  The ZeroLend Ecosystem

                  The ZeroLend ecosystem comprises of various entities and features:

                  1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

                  2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

                  3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

                  4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

                     To know more, read "Account Abstraction"

                  5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

                     To know more, read "Real World Assets"

                  6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

                     The ZeroLend Ecosystem

                     The ZeroLend ecosystem comprises of various entities and features:

                     1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

                     2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

                     3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

                     4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

                        To know more, read "Account Abstraction"

                     5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

                        To know more, read "Real World Assets"

                     6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

The ZeroLend Ecosystem

The ZeroLend ecosystem comprises of various entities and features:

1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

   To know more, read "Account Abstraction"

5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

   To know more, read "Real World Assets"

6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

   The ZeroLend Ecosystem

   The ZeroLend ecosystem comprises of various entities and features:

   1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

   2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

   3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

   4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

      To know more, read "Account Abstraction"

   5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

      To know more, read "Real World Assets"

   6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

      The ZeroLend Ecosystem

      The ZeroLend ecosystem comprises of various entities and features:

      1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

      2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

      3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

      4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

         To know more, read "Account Abstraction"

      5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

         To know more, read "Real World Assets"

      6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

The ZeroLend ecosystem comprises of various entities and features:

1. DeFi Lending (Live): A decentralized, non-custodial liquidity protocol enabling users to participate as liquidity providers or borrowers within the zkSync Ecosystem. ZeroLend also aims to provide lending&borrowing on various supported assets across multiple chains. Powered by LayerZero. To learn more, read "DeFi Lending".

2. $ONEZ - the yield-bearing Stablecoin: ZeroLend has its own stablecoin that is designed to capture the native yield from the lending protocol and has self loan repaying capability. Users can also mint $ONEZ and participate in DeFi within the zkSync ecosystem. To learn more, visit docs.onez.cash.

3. ZeroLend Governance ($ZERO): A governance system for governing the ZeroLend Protocol, enabled by the $ZERO token. To learn more, read "Zeronomics" and "Participation Incentives".

4. Account Abstraction (Live): This feature allows for gas-less transactions, social logins, delegated transactions, etc.

   To know more, read "Account Abstraction"

5. Support for Real-World Assets (Q2 2024): Real World Assets (RWA) is a trillion-dollar market. ZeroLend is at the forefront of integrating these assets into our lending protocol.

   To know more, read "Real World Assets"

6. Privacy Layer using zkStack (Q4 2024): With compliance with regulations (such as KYC), users can lend/borrow assets using zk proofs and keep their transactions private. To know more, read "Hyperchains and Privacy Layer".

Bridge tokens to zkSync or Exchange fiat currencies for cryptocurrencies and explore transactions using Explorers from ecosystem partners.

Bridges & Wallets

View your assets and interact with zkSync. Use a native bridge or ecosystem partners to transfer tokens from Era to Ethereum or other networks.

Current Investors

Binance Labs

Request a demo to show more

Primary Industry

Software

Sub Industries

Gaming

Website

www.app.starrynift.art

Verticals

Blockchain, Blockchain, Blockchain

Company Stage

Early Stage