đ Protocol Introduction
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Last updated
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SYMMIO TL;DR
SYMMIO offers a comprehensive perpetual exchange infrastructure that can be effortlessly integrated into an existing or newly built decentralized exchange; for example, a Uniswap fork can now upgrade its tech stack to offer perpetual futures as leveraged trading to its userbase simply by integrating the SYMMIO SDK, forking our code-base, or letting our integration team help you deploy.
The complete functionality found on https://cloverfield.exchange/trade/BTCUSDT can be easily incorporated into your platform through an iFrame or SDK, streamlining the process for seamless integration.
SYMMIO effectively circumvents liquidity fragmentation often associated with forking projects and concepts, such as vAMM-based perps (e.g., GMX, Gains) or OrderBook-based (e.g., DyDx). By providing access to an extensive pool of institutionally-backed liquidity providers, known as "hedgers" in SYMMIO, the user experience is significantly enhanced through Liquidity aggregation instead of Liquidity fragmentation.
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SYMMIO is a novel financial protocol in the decentralized finance (DeFi) space that aims to revolutionize digital on-chain derivatives' creation, trading, and settlement. By providing true price discovery and automated over-the-counter (OTC) trade settlement directly on the blockchain, it intends to improve the efficiency, transparency, and accessibility of derivative markets.
SYMMIO achieves maximum throughput despite the on-chain settlement, trustlessness, and decentralization by leveraging elements of OTC trading, Request for Quote (RFQ) price finding, and trustless off-chain technology, combining it into a new concept called automated Markets for Quotes or short AMFQ.
SYMMIO provides these technologies to 3rd parties & offers the infrastructure for decentralized perpetual exchanges that facilitate decentralized derivatives trading.
Virtual AMM-based trading (used in GMX or Gains)
Onchain Order Book based trading (used in DyDX)
aMFQ's (used in SYMMIO)
SYMM introduces a novel decentralized on-chain derivatives trading approach using OTC-based "atomic Request for Quotes."
SYMM doesn't rely on virtual Automated Market Makers or Order Book technology.
The aMFQ peer-to-peer symmetrical agreement protocol allows digitized derivatives to be cleared directly between parties in a trustless and decentralized manner.
It eliminates the need for traditional intermediaries and paves the way for limitless access to any market.
Isolation
The SYMM derivatives engine operates on the principle of isolating trades between parties, PartyA and PartyB. Within this peer-to-peer trading environment, both parties are treated equally, as they contribute collateral and represent one side of the transaction. The Long position of one party corresponds to the Short position of the other, and a trade can only be executed upon finding a suitable counterparty. The primary objective of the SYMMIO platform is to facilitate connections between PartyA and PartyB, enabling trades to be established between them.
In recognition of the inherent duality of our world, we are confident that this innovative approach will have a lasting and transformative impact on the trading landscape.
Profits and losses are effectively contained within the agreement between these two parties, preventing losses from impacting external parties. While users can share PnL among various PartyB participants, it is essential to understand that both parties maintain equal rights. In traditional terminology, the "taker" and the "maker" are treated identically. If the maker lacks sufficient collateral, they will be liquidated in the same manner as the taker.
This approach distinguishes SYMM IO from other liquidity provider-based perpetual models, enabling highly efficient trading without needing order books.
Decentralized Oracles: While the AMFQ system itself is oracle-less, SYMMIO employs threshold-signature-based oracles to help solve disputes between parties. These oracles act as economic-driven, third-party market observers, ensuring the trustless and secure functioning of the system in times when PartyA and PartyB involved in a trade don't agree on preset rules or prices.
N-dimensional Orders: SYMMIO introduces an n-dimensional order system, which enables liquidity providers to create derivatives with their preferred rulesets. This approach allows for creating an unlimited variety of markets instead of the traditional single-variable parameter model based on price alone.
Immutable "automated Request for Quote": Users can create an immutable "Request for Quote" on the blockchain with their desired trade parameters. When a counterparty accepts the request, a trade gets executed, outsourcing the order matching to 3rd party systems off-chain, achieving maximum throughput while keeping integrity through on-chain settlement.
Minimized Trust Trade Setup: To ensure minimal trust and increased security, both the buyer and the seller lock the necessary collateral in the AccountManager engine, resulting in a symmetrical agreement.
Oracle-Verified PnL: A neutral Oracle party verifies the uPnL-based balance changes of each party at any given time, ensuring the solvency of counterparties and enabling smooth and secure trades.
Free Market for Derivatives: SYMMIO fosters a free market around derivatives, where liquidity providers compete to offer the most desirable parameters, such as price, funding rate, and maintenance margin. This competition drives innovation and creates a vacuum for liquidity, sucking everything into the SYMMIO ecosystem.
SYMMIO is inspired by its traditional finance predecessor, "Bilateral OTC derivatives." It aims to create a global, peer-to-peer symmetrical agreement protocol that empowers individuals and institutions to trade freely and securely. This documentation will guide you through the various aspects of SYMMIO, helping you understand and utilize its full potential.
