How Shield works
Shield is building a secure, stable, and open decentralized derivatives trading protocol. Based on a fully non-cooperative game network. Shield's decentralized network is maintained by five roles; trader, broker, private pool LP, public pool LP, and liquidators. Including scheduling of value, which is performed through the SLD governance token.
Brokers: With the "Broker Campaign" commission system, brokers bring a steady stream of traders to the Shield network through education and referrals
Traders: Buyers of Shield protocol who pay trading fees and funding fees for their trading needs.
Private Pool: Sellers of Shield protocol, who provide liquidity to the protocol's private pool through their professional market-making capabilities and earn an order taking liquidity bonus (SLD) and trader‘s funding fee(option premiums). Trader's orders are first taken by the private pool.
Public Pool: The reserve liquidity pool is used when the entire private pool is insufficiently liquid or when the LP's order margin is insufficient. Everyone can provide liquidity and earn LP rewards (SLDs) through liquidity mining
Liquidator: Trigger liquidation contract when there is an insufficient balance in the funding fee account or liquidity margin, to receive 150% of the gas expense as arbitrage rewards
Each role has a clear interest incentive and sufficient competition mechanism, each person for their own interests to implement the network needs, but to achieve the optimal network-wide Nash equilibrium to maintain the security and stability of the network.
Last modified 2mo ago
Copy link