Comment on page
Introduction to SYMMIO
A protocol for Symmetrical Contracts.
SYMMIO introduces a method for digitalizing bilateral Over-The-Counter (OTC) derivatives in a permissionless, on-chain manner using:
(1) Continuously verifying the solvency of all participants, and
(2) Mediating potential parameter disagreements.
Utilizing this novel combination of rather distinct technologies, we have developed automated bilaterally settled agreements further termed "Symmetrical Contracts." This architecture facilitates the issuing, and trading of symmetrical, trustless and permissionless settlements of synthetically created digital derivatives amongst two or more parties.
Symmetrical Contracts are a new financial trading primitive for trading derivatives, permissionlessly and trustless on the blockchain, inspired by TradFi "Bilateral Agreements".
SYMMIO uses intent-centric architecture combined with bilateral OTC to create truly permissionless digitized derivatives for the blockchain economy.
Intent-centric means, there is a PartyA that requests a trade and a PartyB that responses, a PartyA & B match results in both sides putting up collateral (hence bilateral) to execute the trade.
After the trade is executed both parties have to constantly ensure that their collateral and margin is sufficient to keep the trade open, 3rd party liquidators, watchdogs and other tools help to ensure that solvency of all parties in the system is given at all time.
If a party goes insolvent it will be liquidated, this is true for LiquidityProvider (PartyB) as well as Traders (PartyA), therefore the system is 100% trustless, as LiquidityProvider and Trader are treated equally.
Because all PartyA and PartyB pairs are isolated in itself, and no losses can accrue outside of their pairing, the system is trustless, can be oracle-less, aswell as hyper capital efficient.