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This Litepaper was created out of a transcript from an AMA and is aimed to help understand SYMMIO, a transformative protocol in decentralized finance (DeFi) especially onchain derivatives. Throughout this Litepaper, we will explore the innovative platform, its inception, its capabilities, and the team behind it.
SYMMIO is being launched as a joint venture of MarketMakers, Exchanges, and parts of the various previously involved development teams. SYMMIO was developed and researched with teams from DEUS, MUON, dSynths, and Cloverfield. SYMMIO is already being adopted by Thena, and three other decentralized exchanges will be integrated soon.
SYMMIO aims to revolutionize the DeFi space by solving two major issues - capital efficiency and throughput in on-chain derivatives.
Out of the year-long research and joint efforts of different projects, SYMMIO was created.
The concept was initially conceived by Lafachief in 2020, evolving over a span of three and a half years through relentless research and development efforts. This work involved extensive collaboration with external and internal community members and several partner protocol teams.
Currently, SYMMIO has a team of more than 15 individuals. A section dedicated to the contributors will soon be integrated into the Gitbook.
The goal is to implement fully on-chain governance at some point, the initial team will only help create the initial structure, and afterward, the SYMM DAO will decide about future deployments and upgrades. While the team will continue to propose changes they see fit, the ultimate power will lie in the hands of the token holders.
The SYMMIO journey commenced in May 2020, with the first iteration project launching in September 2020. Initially, the team built a GMX-based model but soon realized its limitations in scalability. Consequently, they embarked on a three-year research and development journey to create a scalable, peer-to-peer-based system.
In the blockchain realm, oracles bridge off-chain and on-chain data. However, they present a challenge in on-chain synthetics or derivatives, often due to issues such as front-running. Even chain link solutions have proven insufficient in this aspect.
SYMMIO, unlike vAMM-based platforms, tries to rely as less as possible on Oracles for pricing. Instead, it adopts a peer-to-peer OTC exchange system, partially sidestepping the Oracle problem.
Please note that in the first SYMMIO MVP, Oracles are still needed to provide uPnL of accounts, it's needed for flagging liquidations and used for force closing (used when PartyB doesn't respond in time or acts malicious).
Efficiency is another critical issue in on-chain derivatives. Due to blockchain's limitations, traditional order book models are capital efficient but technologically slow. Conversely, systems trading against the oracle price are technologically fast but capital inefficient.
SYMMIO strikes a balance by adopting a peer-to-peer OTC system that facilitates high-speed trading while being exceptionally capital efficient.
SYMMIO's unique system allows users to engage in peer-to-peer trade directly. This system does not rely on oracles but leverages off-chain peer-to-peer communications. The trades are executed only if a counterparty is present and the terms of the trade are negotiated upfront.
This system mitigates double spending and achieves settlement speeds of five to ten seconds, ensuring an efficient and seamless trading experience akin to centralized exchanges.
SYMMIO's innovative solution is expected to be transformative in the DeFi space. Its capital efficiency and high-speed transaction capabilities are projected to make it a significant player in on-chain derivatives trading.