Market Overview
Summary
Derivatives trading has become essential in the crypto landscape, with perpetual contracts gaining a significant share within the market. On-chain derivatives trading protocols have developed in two main directions, the centralized exchange (CEX) order book model, and the GLP fund pool model. However, both models have drawbacks, such as limited open positions and high risk for liquidity providers. Equation, a decentralized perpetual contract protocol, offers a solution by introducing the Balanced Rate Market Maker (BRMM) model, providing efficient and transparent trading experiences.
Introduction
Equation is a decentralized perpetual contract protocol built on Arbitrum, audited by ABDK. The protocol allows traders to establish larger positions at up to 200x leverage, minimizing liquidation risks. Liquidity providers can also enhance capital efficiency by utilizing leverage on Equation. It officially launched on the Arbitrum mainnet and ranks 13th among on-chain derivatives exchanges.
Main Points
The BRMM model, inspired by the Automated Market Maker (AMM) mechanism in the spot market, calculates the liquidity pool’s balance rate based on temporary positions held by liquidity providers. This rate determines the contract price premium relative to the index price, facilitating price discovery. Equation’s protocol leveraged liquidity amounted to $596,584,794 on the 24th day of the Mainnet operation, with a trading volume of $296 million and an open contract volume of $76,183,194.
EQU is Equation’s native token, with a maximum supply of 10 million tokens. Tokens are generated through position mining, liquidity mining, and referral mining, rewarding community members. Equation differentiates itself in token allocation, with 50% of tokens allocated to traders through Position Mining. The project incorporates staking mechanisms, indicating confidence in the project’s development.
Conclusion
Equation excels in the decentralized perpetual contract field, providing traders with a cost-effective trading service and liquidity providers with increased capital efficiency. The BRMM model successfully addresses the challenges faced by AMM models in the perpetual contract market. Equation has the potential to dominate the decentralized perpetual contract market, prioritizing security, transparency, and community-driven innovation.
About Equation: Equation is a decentralized perpetual contract protocol built on Arbitrum, audited by ABDK. It aims to provide a reliable and secure environment for trading perpetual contracts. For more information, visit the official website at https://equation.org.
Media Contact:
Company: EquationDAO
Contact: Equation Media Team
Email: market@equation.org
Website: https://equation.org
Twitter: https://twitter.com/equationdao
Medium: https://medium.com/equationdao
EQU is tracked on:
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