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Hedger - Example Flow

Below is an example of how the hedger flow and connection could work with SYMMIO.
As the permissionless lightweight nature of the protocol presets only a few rules like how a Intent or Quote need to be structured and responded, MarketMakers can create their own 100% unique MarketMaking and Hedging strategies.
Frontends and Drivers might require MarketMakers to provide a list of Markets and a Bid, Ask and spread for each market, as well as a Range of CVA, preference in LiquidationFee & Funding Rates can all be defined by MarketMakers, there are no requirements by the protocol.
Providing infinite customizability and a focus on fair competition to create the best long term sustainability and offer best executions for traders.

SYMMIO the customize everything protocol

As lightweight and customizable as the system promises to be everything can be customized.
Virtually any custody or collateral solution can be used to interact with any secondary market, all markets or strategies can be used to hedge & any frontend or decentralized driver system can be used to offer services, SYMMIO is truly the customize everything protocol.

The SYMM Hedger Multiverse

Every individual hedger stands but as a single thread in the vast tapestry of potential infinite hedgers, and every unique "hedger flow" is only a part of an infinite arrays of ever competing "hedger flows".

The core contracts only inherit very little complexity, the overall system allows for infinite complexity.
As Hedgers offer their Quotes to a "Hedger pool" either via Introductionor Drivers (TBD) users can select to trade upon them, there are rules on how hedgers should communicate their quotes to the frontend, but there are no rules how a hedger should hedge themselfs against them.
Therefore creating an infinite amount of possible "Hedger flows".

But as a hedger what is really required from you? Stream, Commit, Detect, Execute & Rebalance

  1. 1.
    Stream a list of supported markets, so frontends can display them more easily.
  2. 2.
    Commit to a Bid and Ask spread for each market, so users dont need to request them.
  3. 3.
    Detect when a user requests a trade, be as fast as you can for a good UX.
  4. 4.
    Execute the trade when a user requests it, dont let them hanging.
  5. 5.
    Rebalance your collateral so your positions stay healthy, to not get liquidated.
Hedgers should strive to achieve a High response rate. (not responding to quotes is currently not punishable, but will potentially be punishable in the future.)

Let's dive into the first example SYMMIO Hedger flow:

Please note that this is only an EXAMPLE flow for a Liquidity Provider or Hedger on the SYMMIO protocol, SYMMIO itself and the team behind SYMMIO only provide example software that can be used to create own Hedging tools.

Deposit, Prepare,

Step 1 - Deposit

MarketMakers deposit margin on-chain and in Binance Custody, then mirror it to the Binance Futures Account.

Step 2 - Prepare

Set up the hedging software.

Step 3 - Stream

Receive, stream prices, and listen to incoming requests.

Step 4 - Request

A user visits the Pear Frontend, selects an asset, and sends an AMFQ request for a trade on-chain.

Step 5 - Detect, Hedge & Execute

The MarketMaker(Hedger) detects, reserves, hedges, and fills the quote on-chain.

Step 6 - Rebalance

Positions need to be maintained by all parties at all times, otherwise, 3rd party liquidators flag them as liquidated and earn the liquidation fee as a prize.

Step 7 - Customize, Optimize & Expand

As all Frontends, Driver systems, Exchanges, Trading Desks, margin accounts, custody solution, wallets and forms of hedging can be swapped, rotated, infinitely customized and perpetually optimized, best execution prices for traders and everlasting efficient profits for market makers are possible, the possibilities for refinement are sheer endless.

The true innovation sparks from the adopters of the SYMMIO system, who perpetually iterate and enhance, continuously propelling the system into a realm of infinite optimization and continuous improvement.

The SYMMIO team is excited about all the beautiful innovations that are yet to be built on top of our core system.

All rights to the people (c) 2023 Symmetry Labs A.G.