SynFutures: a potential dark horse in the decentralized derivatives market

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远山洞见2024/12/09 10:04

By:远山洞见

I. Project introduction

SynFutures is a decentralized derivatives trading platform dedicated to providing a permissionless, transparent, and efficient trading environment. Through three iterations, the latest SynFutures V3 has launched the innovative Oyster AMM model, which combines single-currency centralized liquidity, leverage mechanisms, and fully on-chain order books, bringing revolutionary capital efficiency and User Experience improvements to the derivatives market.

Oyster AMM achieves seamless integration of liquidity and order books, forming a unified liquidity management system that makes trade execution more efficient and predictable. In addition, the platform introduces advanced risk management mechanisms, including dynamic fines and stable marked price systems, to prevent market manipulation and large-scale clearing, and to protect user rights and market stability.

As of now, according to official documentation data, the cumulative trading volume of SynFutures platform has exceeded 75 billion USD, attracting over 200,000 traders and supporting over 280 trading pairs. Supported by top industry institutions, SynFutures is redefining the future of the DeFi derivatives market.

SynFutures: a potential dark horse in the decentralized derivatives market image 0

II. Project highlights

1. Single currency centralized liquidity and leverage optimization

The Oyster AMM model allows liquidity providers (LPs) to provide liquidity through a single token within a specific price range, eliminating the tedious steps of bilateral asset allocation. Combined with leverage, this design significantly improves capital utilization, enabling LPs to obtain higher returns under more flexible conditions, while reducing systemic risk and meeting the demand for efficient liquidity in the derivatives market.

2. Permissionless on-chain order book, ultimate transparency and anti-censorship

Combined with a fully on-chain order book model, SynFutures provides a transparent, trustworthy, and censorship-resistant trading environment. Even niche or highly volatile assets can be efficiently traded through on-chain order books, avoiding security risks caused by centralized management. All data is stored on-chain, allowing users to avoid concerns such as "downtime", "unplugging the network cable", or fund misappropriation, ensuring the security and reliability of transactions.

3. Unified liquidity system for more efficient transaction execution

Oyster AMM integrates centralized liquidity and on-chain order books into a unified model, providing a seamless liquidity system for traders and LPs. Both active traders and passive liquidity providers can enjoy efficient, atomic-level trade execution, avoiding delays and uncertainties caused by multi-system interactions, and improving trading stability and predictability.

4. Dynamic risk management and user protection mechanisms

In order to protect user rights, Oyster AMM has introduced a dynamic penalty mechanism and a stable marking price system. Dynamic fines punish abnormal price deviations, prevent market manipulation, and maintain market fairness. The stable marking price system uses the index Moving Average algorithm to alleviate the liquidation risk caused by violent price fluctuations, ensure stable market operation, and allow traders and LPs to participate in the market more confidently.

III. Market value expectations

F ($F), as the governance token of the decentralized derivatives trading platform SynFutures, brings efficient decentralized trading experience to liquidity providers and traders with its innovative Oyster AMM model. Currently, the unit price of $F is $0.082, the total supply is 10 billion, the circulation is 1.20 billion, and the circulating market value is approximately $99.02 million.

To evaluate the market potential of F, we compare it with other similar decentralized derivative protocols, especially Drift Protocol ($DRIFT), GMX ($GMX), and dYdX ($DYDX).

Benchmark project:

1. Solana on-chain asset trading center: Drift Protocol ($DRIFT)

Unit price: $1.55

Market capitalization: 411 million USD

Fully diluted market cap: $1.547 billion

Circulation: 266 million DRIFT

Total supply: 1 billion DRIFT

2. Decentralized derivatives protocol: GMX ($GMX)

Unit price: $42.73

Market capitalization: 422 million USD

Fully diluted market cap: $422 million

Circulation: 9.87 million GMX

Total supply: 9.87 million GMX

Maximum supply: 13.25 million GMX

3. Decentralized exchange: dYdX ($DYDX)

Unit price: $2.44

Market capitalization: 1.733 billion USD

Fully diluted market cap: $1.734 billion

Circulation: 710 million DYDX

Total supply: 1 billion DYDX

Market value comparison with expectations

1. Benchmarking Drift Protocol ($DRIFT)

If $F reaches Drift Protocol's market cap level ($411 million),

The unit price of $F will rise to $0.343, an increase of about 318%.

2. Benchmarking GMX ($GMX)

If $F reaches the circulating market value level of GMX (422 million USD),

The unit price of $F will rise to $0.352, an increase of about 329%.

3. Benchmarking dYdX ($DYDX)

If $F reaches the circulating market value level of dYdX (1.733 billion USD),

The unit price of $F will rise to $1.44, an increase of about 1657%.

IV. Token Economics

The total supply of F is 10,000,000,000 tokens, and the circulation of TGE is 12%, which is 1,200,000,000 tokens. The following is the detailed token distribution plan.

1. Community (28.5%)

The community part accounts for 28.5% of the total supply, aiming to motivate community active level and ecological construction. Among them, 7.5% is used for airdrops, all unlocked during TGE (token generation event) to increase the sense of participation of early users; 20.5% is used for ecosystem development, adoption, four-year linear unlocking, providing continuous support for the long-term expansion of the project. In addition, 0.5% is used for liquidity movement, all unlocked during TGE to ensure stable liquidity in the early stage of the market.

Supporters and advisors (23.5%)

Tokens allocated to supporters and advisors account for 23.5%. This part helps attract and reward early contributors who provide strategic support and professional guidance for the project. Tokens will be linearly unlocked within three and a half years after a six-month lock-up period, ensuring that the long-term development of the project is consistent with the interests of supporters.

3. Foundation Treasury (25.0%)

The Foundation Treasury holds 25.0% of the tokens for project operations, research and development, and long-term strategic reserves. 2% is unlocked during TGE, and the remaining portion will be linearly unlocked within four years. This allocation provides continuous financial support for the project to respond to market changes and promote innovation.

4. Core contributors (15.0%)

Core contributors account for 15.0% and are used to motivate the team and key developers. Tokens are linearly unlocked within three and a half years after a six-month lock-up period to ensure consistency between the core team and the project's long-term development goals, and to ensure the stable progress of the project.

Protocol development (5.0%)

Tokens used for protocol development account for 5.0%, supporting technological iteration and functional innovation. 0.5% will be unlocked during TGE, and the remaining part will be linearly unlocked within four years to ensure continuous protocol upgrades and optimizations.

6. Liquidity (3.0%)

The liquidity part accounts for 3.0% and is fully unlocked during TGE, providing sufficient initial liquidity for the market and ensuring the smooth trading of tokens and the stability of the market

V. Team and financing

Team Part:

Rachel Lin: Co-founder and CEO, responsible for overall strategic direction and operational management.

Matthew Liu: Co-founder and CSO, leading the strategic planning and market expansion of the project.

Mark Lee: Chief Marketing Officer, responsible for brand promotion and marketing strategy.

Wenni Cai: Business Manager, responsible for daily business and operational management.

In terms of financing:

Series B financing (October 19, 2023): The project successfully received $22 million financing, led by well-known institutions such as Pantera Capital, HashKey Capital, and Susquehanna International Group.

Series A financing (June 17, 2021): With the support of top institutions such as Polychain, Pantera Capital, and Wintermute, the project completed a financing of $14 million.

Seed round financing (January 8, 2021): $1.40 million in initial investment from Dragonfly and Standard Crypto

VI. Risk Warning

1. Although the platform has introduced a dynamic penalty mechanism to suppress abnormal trading behavior, malicious market manipulation can still occur. For example, large traders or external malicious actors may use abnormally large orders or manipulate price oracles to raise or lower the underlying asset price in the short term, causing other users' positioning to be forced to liquidate, thus making profits. This situation can lead to traders suffering huge losses without any preparation.

2. SynFutures relies on on-chain oracles to provide real-time price data for underlying assets. If the oracle experiences data delays, failures, or attacks, the platform's marked prices may not accurately reflect the actual market price. In this case, incorrect price data may trigger unnecessary liquidation or lead users to trade under non-real market conditions.

VII. Official link

Website：https://www.synfutures.com/

Twitter：https://x.com/SynFuturesDefi

Discord：https://discord.com/invite/synfutures

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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