This page explains how to use our beta app for the UnUniFi PoC of Derivatives. We will focus specifically on interacting with the UX of our beta app.
Derivatives are financial instruments created based on the price fluctuations of crypto assets. UnUniFi's Derivatives include Perpetual Options and Perpetual Futures. The crypto assets market can experience significant price volatility, and Derivatives of crypto assets are used to hedge against that risk. Derivatives also allow for leveraged trading, whereby a large number of assets can be traded with a small amount of money. However, Derivatives of crypto assets carry a high level of risk, so caution should be exercised when investing in them.
Our model is an improved model of the GMX model. The place of improvement is the "imaginary funding rate" to decrease the risk of running out of assets in the pool due to the large winning of traders.
In the GMX model, If many traders take a long position more than a short position, it means that LP is equivalent to having a short position. This is risky for LP, so it is desirable to make LP position close to the neutral position. So if many traders take a long position more than a short position, an imaginary funding rate is imposed on the traders who take a long position, to incentivize traders not to take a long position more and to make the LP position close to the neutral position.
In short, our model reduces the risk for liquidity providers, helps them earn fee income, and facilitates the provided liquidity.
Please login using your registered wallet: https://poc-derivatives-v1.ununifi.io/portal/derivatives
Please Feedback here
https://github.com/UnUniFi/UnUniFi-derivatives-poc-v1/issues
Click Derivatives from the menu
The Derivatives Dashboard page will be displayed.
Click Connect wallet button on the top right corner