Terms
Taker: the buyer of Perpetual Options for speculative and hedging purposes
Maker: the liquidity provider of Perpetual Options, as known as LP. In SLD, there are two types of LPs: LP1 and LP2.
LP1: referred to as Public Pool. Risk and rewards are shared among LPs in this pool. Public pool is the senior tranche with limited market risk exposure, which will only take over liquidated positions from LP2(private pools). Public Pool will target retail liquidity mining participants, and profit from the portion of Funding Fees and token incentives.
LP2: referred as Private Pool. Each LP is entitled to all the risks and rewards of that private pool. Private pool has the priority of taking orders and managing their net position through active hedging strategies. Most LP2 are institutions and will profit mainly from funding fees and active market making. They will receive token incentives at the same time.
Liquidator: liquidators actively screen all open positions that Takers and Makers have. They will receive tokens as rewards for accurately triggering the liquidation contract.
Wallet Address: Ethereum address that will be used for smart contract interaction.
Trading Pair: Asset pairs for trading and settlement. Ex: ETH/DAI, BTC/USDC.
Position Type: Long or Short.
Position Amount: The number of contracts a user is currently having. Trading fee: 0.1%(Settlement fee= Notional value * 0.1%, Settlement fee is only applied to Open a Position)
Trading fee: 0.1%(Trading fee= Notional value * 0.1%, Trading fee is only applied to Open a Position)
Funding Fee: the cost that users have to pay for keeping positions for that funding interval. Funding fee is calculated through the Funding Fee Pricing Model. The fee will be Prepaid for opening a position and accumulated through funding intervals. The total fee incurred will be settled once the position is closed or liquidated.
Insurance Fund: 10% of the Transaction fee will be reserved for the insurance fund to compensate liquidators and system loss.
Index Price: price feed from Chainlink, Uniswap etc.
Settlement Asset: the asset that is used for clearing and settlement, Ex: Dai, USDC.
reDAI: when DAI is deposited into LP1 pool, the platform automatically generates a new LP token that represents the share the liquidity provider owns of LP1 pool. The same rule applies to reUSDT and reUSDC. Reserved Liquidity Mining: the incentive for providing liquidity in LP1. In most scenarios, the liquidity from LP1 will be used as back-up liquidity to fulfill the orders leftover by LP2. By staking LP tokens, liquidity providers from LP1 will receive SLD as rewards.
Reserved Liquidity Mining: the incentive for providing liquidity in LP1. In most scenarios, the liquidity from LP1 will be used as back-up liquidity to fulfill the orders leftover by LP2. By staking LP tokens, liquidity providers from LP1 will receive SLD as rewards.
Active Liquidity Mining: whenever liquidity from LP2 is locked for taking existing orders, liquidity providers will receive SLD as rewards. Buyback-and-Burn: after the deduction for the insurance fund, all transaction fees leftover will be used for buyback-and-burn. Anyone can use SLD to swap USDT, DAI, USDC in transaction fee pools, and those SLD will be burnt.
Swap&Burn: after the deduction for the insurance fund, all transaction fees leftover will be used for Swap&Burn. Anyone can use SLD to swap USDT, DAI, USDC in transaction fee pools, and those SLD will be burnt.
ADL(Auto-deleverage-liquidation): if the forced liquidation orders can not be fully filled by the LP1 and LP2, the risk control system uses the forced counterparty liquidation model instead of forced liquidation. In most cases, the liquidation order will be resolved by the LP1 and LP2.
Last modified 5mo ago
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