SynFuturesV3: Revolutionizing Decentralized Derivatives Trading | TKX Weekly

4 min readJun 3, 2024

Since its launch in early March, SynFutures has surged in trading volume and TVL, becoming the leading derivative platform on the Blast mainnet. Derivatives have always been one of the most compelling narratives in the blockchain space. SynFutures V3 recorded over $9 billion in trading volume in its first month, surpassing Synthetix and Drift, and ranking among the top three perpetual DEXs by volume. V3’s TVL reached $44 million, driven by incentives like Oyster Odyssey and Blast Gold points. By the end of Q1, SynFutures captured 83% of Blast’s volume market share, establishing itself as a standout in DeFi.

Introduction to SynFutures and V3

SynFutures is a platform dedicated to creating a fully decentralized and high-performance perpetual contract exchange. Founded by industry veterans with backgrounds in traditional finance and blockchain technology, SynFutures aims to democratize access to derivatives trading. The platform allows anyone to list and trade futures and perpetual contracts on any asset, bringing a new level of flexibility and inclusivity to the DeFi space.

The latest iteration of the platform, SynFutures V3, introduces the groundbreaking Oyster AMM (Automated Market Maker) model. This new model integrates the best features of traditional order books and AMMs, offering enhanced capital efficiency, transparency, and security.

How it Works

At the core of SynFutures V3 is the Oyster AMM model, which unifies concentrated liquidity and limit orders into a single, cohesive system. This mechanism, designed specifically for derivatives trading, provides significant improvements in capital efficiency and user experience.

Key Features of Oyster AMM

Concentrated Liquidity and Limit Orders: The Oyster AMM allows liquidity providers (LPs) to add liquidity to specific price ranges. This concentrated liquidity is combined with native limit orders, providing a more efficient and predictable trading environment. LPs benefit from higher capital efficiency and reduced slippage for traders.
On-Chain Order Book: Unlike traditional AMMs that rely solely on liquidity pools, the Oyster AMM incorporates an on-chain order book. This ensures that all limit orders are stored and executed on the blockchain, offering greater transparency and security compared to off-chain alternatives.
Dynamic Penalty Fees: To safeguard against price manipulation and ensure market stability, SynFutures V3 employs a dynamic penalty fee system. This system imposes additional fees on trades that result in significant price deviations, discouraging malicious activities and protecting the interests of all market participants.
Smoothed Spot Index Price: The platform uses an exponential moving average (EMA) process to stabilize the mark price, reducing the impact of sudden price fluctuations and minimizing the risk of manipulation. This ensures a fairer and more stable trading environment.
Permissionless Token Listings: SynFutures V3 supports permissionless creation of token pairs for trading, allowing anyone to list a new derivative contract. This opens up opportunities for trading a wide range of assets, including emerging and niche tokens.

Performance Metrics

Since the launch of V3 on the Blast mainnet, SynFutures has demonstrated remarkable performance. In its first month, the platform recorded over $9 billion in trading volume, positioning it as one of the top perpetual DEXs by volume. Key metrics include:

Trading Volume: SynFutures V3 consistently ranks among the top three perpetual DEXs in terms of daily trading volume, surpassing established platforms like dYdX and GMX.
Total Value Locked (TVL): The platform’s TVL reached $44 million shortly after launch, driven by incentive programs like Oyster Odyssey and Blast Gold points.
User Engagement: The introduction of innovative features and incentive programs has led to a substantial increase in user engagement, with the platform attracting thousands of new addresses and active traders.

Summary and Thoughts

SynFutures V3 has rapidly become a leading player in decentralized derivatives, achieving over $9 billion in trading volume in its first month and surpassing competitors like Synthetix and Drift. The innovative Oyster AMM model enhances capital efficiency and reduces protocol risk. The platform’s strategic incentive programs, such as the Oyster Odyssey and Blast Gold points, have effectively driven user engagement and TVL growth. By the end of March, SynFutures led with an 83% market share on Blast and showcased its capability to attract substantial trading volumes with a much lower TVL than its peers. Strong community engagement and participation in various competitions and events have further solidified SynFutures’ position within the ecosystem.

Reference

https://messari.io/report/state-of-synfutures-q1-2024
https://docs.synfutures.com/