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What is Project Matrixswap (MATRIX)?
Matrixswap is a virtual AMM protocol based on perpetual swaps deployed on the Polkadot and Cardano blockchains. Unlike traditional AMM, users can buy or sell perpetual contracts of any asset with up to 25x leverage. While most decentralized derivatives trading platforms face liquidity concerns, Matrixswap uses a vAMM that provides limitless on-chain liquidity. A funding rate mechanism is incorporated to ensure MarkPrice keeps a close eye on IndexPrice.
Matrixswap aims to be a fully community owned and managed Defi protocol in the long run.
Matrixswap . Foundation Structure Components
Matrixswap’s operating model includes the following components:
- Perpetual Swaps on VAMMs: pool of virtual AMMs that allow margin swaps (using leverage)/derivatives to be created.
Where Perpetual Swaps (Perpetual Swaps) are cryptocurrency derivatives that allow traders to speculate on the pricing of specific underlying assets. Perpetual contracts have two main characteristics:
(i) There is no expiration date on the contract. The contract is valid until traders close their positions.
(ii) The underlying asset itself is never traded, so custody issues are minimized. The swap price closely tracks the price of the underlying asset using the funding rate. A mechanism that ensures permanent convergence of Mark Price with Index Price.
- Oracle: Price data source for reference from Kylin, Chainlink, MatrixOracle.
- Construct: Cross-chain bridge, allowing to expand trading of other asset pairs.
- Nebuchadnezzar: is a DEX aggregator that connects to high volume AMMs operating on the Polkadot and Cardano networks
- ZionDAO: Decentralized governance mechanism
All in all, the main difference of perpetual contract trading on Matrixswap is that all assets and transactions are stored and executed on-chain. Unlike Binance, perpetual contracts on Bitmex, Matrixswap does not rely on counterparties and does not have the risk of off-chain centralized servers. With Matrixswap, users have full control over their own funds.
How vAMM . works
Matrixswap vAMM (Pioneered by perp.fi) uses the formula x*y = k (with k being a constant) like most other AMMs. However, as the word virtual suggests, the vAMM itself does not contain an actual asset pool (k). Instead, the actual assets (trader collateral) are held in a smart contract vault that oversees all of the vAMM’s collateral. In other words, Matrixswap uses vAMM as a price discovery mechanism, not for spot trading. This allows Martixswap to operate with limitless liquidity and no permanent loss for the parties involved, as no liquidity provider is required.
For example: 100 USDC is deposited into Clearing House when Trader Neo opens a position, and put into storage (Collateral Vault)
To understand the principle of profit and loss calculation in the protocol. Details at here
K-value coefficient in vAMM
While the k value of a traditional AMM is the equal value of assets x * y in a given liquidity pool, the k value of vAMM is a number set by the protocol’s architect to ensure The ultimate trading experience in Matrix. At an early stage of the project, Matrixswap core contributors will act as the architects of the protocol to establish a k-value for each vAMM. Several factors are considered during the setting of the k-value:
- Trading volume of the underlying asset
- Value of the underlying asset group
- Price volatility
- Basic Asset Index
- Open Interest Platform
Principles of liquidation of assets (Liquidation) of vAMM
When a trader’s margin becomes lower than the maintenance margin (currently set at 6.25%, subject to change from ZionDAO), liquidation is triggered.
Funding rate
To ensure that the price of perpetual contracts inside Matrixswap converges with real-world index prices, Matrixswap introduces hourly funding rates. Whether perpetual is trading at premium (longs pay shorts) or discount (Shorts pay longs). The grant payment is calculated according to the formula:
Position size * (TWAP of perpetual – TWAP off index) / 24.
Matrixswap uses the same funding rate formula as FTX, as shown below:
- Funding Rate =TWAPperpetual −TWAPindex/24
- fundingRate=TWAPperpetual−TWAPindex/24
All TWAP data taken from Oracle
Trading fees on Matrixswap: A 0.1% transaction fee is charged when opening and closing positions in Matrixswap. It is important to note that fees are not collected as revenue for the protocol, but as insurance backup for the system. 50% of the transaction fees will be deposited into the Insurance Fund, a vault that ensures the stability of the protocol. In the event of unexpected losses from the liquidation process, the Insurance Fund will absorb such losses. Another 50% of transaction fees will be allocated to the following events:
- Buyback and burn Matrixswap platform tokens
- Lottery Prize (lottery)
- Trading Contest Prize
- On-chain referral fee
Roadmap
3rd quarter of 2020
- Generate ideas
- Research begins
- Peer review of alpha product design
- Prepare to develop
Quarter 4/2020
- Forming a core team
- Complete project documentation
- Development begins
Quarter 1 of 2021
- Check the vAMM . structure
- Cross-chain bridge research and development
- The project document is reviewed and completed
Quarter 2 of 2021
- Fund creation from investors
- Oracle Partner
- Alphanet Moonbase version tested kiểm
- Oracle In-house Development
- Smart Contracts for Staking and Rewards
- Urgent Nuke Research and Development
3rd quarter of 2021
- Public IDO and DEX listing
- Liquidity Mining Program
- Cardano’s Smart Contract Integration
- dApp development for Cross-chain bridge
- Developed on Moonbeam
- Emergency Nuke Node Deployment on Moonbeam Testnet
Quarter 4/2021
- Bug bounty program
- Matrixswap V1 gets Mainnet on Moonbeam
- Price data source on multi-chain AMM
- On-chain Referral Program
- Limit Orders and Stop Loss features
- Tested and developed on Cardano
- Multi-chain AMM DEXs aggregator
Quarter 1, 2022
- Cardano Launch Administration
- Oracle Deployment
- Urgent Nuke Button
- Deploy on Cardano Testnet
- Yoroi Wallet Integrated
- Matrixswap V1 Cardano Mainnet
What is the MATRIX token?
MATRIX is a token of the Matrixswap platform and has the following functions:
- Fees when trading on the platform
- Referral rewards, Airdrops, etc.
Some basic information about the MATRIX . token
- Token name: MATRIX token
- Ticker: MATRIX
- Blockchain: Ethereum
- Standard Tokens: ERC-20
- Contract Address: updating
- Estimated supply of circulation: updating
- Initial supply: 100,000,000 MATRIX
MATRIX Token Allocation
- Private Sale: 12.5%, in which 10% will be unlocked when TGE and
- Public Sale: 2.5%, will be fully unlocked when TGE
- Provide DEX liquidity: 1%
- Ecosystem Rewards: 32%, linear distribution over 2 years
- Future growth: 33%, linear distribution over 2 years
- Team: 14%, locked for 180 days after TGE, unlocked daily for 2 years
- Advisor: 8%, locked for 120 days after TGE, unlocked every day for 18 months
Team MATRIX
Adviser
How to earn and own MATRIX token tokens
MATRIXSWAP will conduct IDO on Cardstarter, details will be updated in the near future.
MATRIX Token storage wallet
When TGE, MATRIX will be released as ERC20, you can store it in Metamask Wallet, Trust Wallet, Coin98 Wallet.
The future of Matrixswap, should you invest in MATRIX?
Matrixswap (MATRIX) offers an On-Chain-built derivatives platform using vAMM, allowing for unlimited liquidity. MatrixSwap, developed on Ethereum and integrated on Moonbeam and Cardano, is considered the pioneer derivative application on these two platforms. The project is in the testing phase and waiting for analysis in the near future. All information in the article is information compiled by Coinlive and does not constitute investment advice. Coinlive is not responsible for any direct and indirect risks. Good luck!
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