Developer Docs


Protocol Overview

The Increment protocol utilizes pooled virtual assets for liquidity and Curve V2’s CryptoSwap AMM (Automated Market Maker) as the trading engine to enable on-chain perpetual swaps. Increment's system implementation establishes a complete infrastructure for perpetual swaps, 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
  • Liquidators can operate liquidation bots to liquidate underwater positions in exchange for a percentage of the position
  • 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
  • On-chain governor, so under this framework no single entity or administrator should have the privilege to make changes to the protocol without an on-chain 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.
Risks: 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.
External Contracts: Detailed methods and descriptions for each external contract.
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Last modified 22d ago