Introducing A New Model of Defi Derivatives: Self-Liquidity

We’re here to introduce a new DeFi model we designed, which we call it Self-Liquidity. Compared to traditional DeFi products, our new model has huge difference. It’s more fun, more challenging and more fair. Every DeFi trader should not miss it. You will get some basic knowledge about Self-Liquidity in this post. And then, you can try to play it when it launches.

Self-Liquidity is a product of the long-short game, which is similar to traditional contract in CEX, but it doesn’t need any market makers or liquidity providers. Due to the mechanism, traders don’t need to worry about any risk. Everyone can take their asset back if it can’t be liquidated.

At first, traders can choose a trading pair, a lever and margin amount to open a position, they can own a lot of positions at the same time. Then, before the position can be liquidated, its owner can close it any time, and will get his profit. But if margin of the position less than the threshold, it can’t be closed and will be liquidated. Attention! You have no way to add margin. So please decide lever and margin carefully.

You can view all pool-related data on this page, as well as open and close positions.
You can liquidate on this page.

Traders open positions based on a trading pair, long and short will be counterparts. Long positions are more valuable when the price of the trading pair rises, and short positions are more valuable otherwise. But if all positions are long, or all positions are short, they will have no profit and no loss, no matter how the price changes.

Some problems are simple for CEX or Liquidity-DEX. For example, how to ensure long and short trader can get fair profit, how to ensure all traders’ positions can be stably paid by protocol. But Self-Liquidity requires a lot of complex formulas to solve these problems. Luckily, traders just need to think about how to beat their counterparts,and don’t need to care about how the mechanism works.

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Qilin

Decentralized risk-optimizing protocol for derivatives trading.