Protocol Overview

The Increment protocol utilizes collateral backed virtual assets for liquidity and Curve V2’s CryptoSwap AMM (Automated Market Maker) as the trading engine to enable onchain perpetual swaps. Increment's system implementation establishes a complete infrastructure for onchain perpetuals trading, which features automatically concentrated liquidity, dynamic fees, multi-collateral support, and parameterizable markets.

Users can interact with the protocol in the following ways:

  • Traders can long or short listed perpetual markets with leverage

  • Liquidity providers can deposit funds to each market and act as passive market makers in exchange for trading fees and rewards

  • Liquidators can operate liquidation bots to liquidate underwater positions in exchange for a percentage of the position

  • Stakers can lock tokens to contribute to the safety of the protocol in exchange for insurance fees and rewards

  • Participants can contribute to governance and help decide the future of the protocol

Some notable characteristics of the Increment protocol:

  • AMM-based system which creates its own pools of liquidity and determines it's own market pricing based on the pool dynamics

  • Automatically concentrated liquidity via Curve math, creating a passive LP experience and an equal playing field for all liquidity providers

  • Dynamic trading fees which change depending on the balance of the pools and is facilitated through Curve math

  • Supports multiple collateral types

  • Cross margined, which means that the collateral one user deposits is not attached to one market only but available to all markets

  • Onchain governor, so under this framework no single entity or administrator should have the privilege to make changes to the protocol without an onchain vote and execution

  • Parametrizable pools to support both volatile and less-volatile assets

Table of Contents

Key Terms: Definitions of perpetual swap terms and concepts.

Perpetual Swaps: Detailed explanations, formulas, and features for all elements used in Increment's perpetual swaps.

Contracts Overview: High-level overview of the protocol system design and contracts.

Risk Factors: Descriptions of acknowledged protocol economic risks, actors, and dependencies.

Guides: Detailed step-by-step flows for each actor's interaction with the protocol.

Core Contracts: Detailed methods and descriptions for each core contract.

Token Contracts: Detailed methods and descriptions for each core contract.

External Contracts: Detailed methods and descriptions for each external contract.

Peripheral Contracts: Detailed methods and descriptions for each peripheral contract.

  • Source code will be available in Github

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  • For more technical details on zkSync, visit zkSync Era Docs

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