Introduction
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
Perpetual Swaps: Detailed explanations, formulas, and features for all elements used in Increment's perpetual swaps.
Last modified 22d ago