
dFuture, a decentralized financial derivative platform, the main network is deployed on bsc and heco, official website link: https://bsc.dfuture.com/.
Compared with other DeFi products, dFuture has the following highlights:
1. QCAMM mechanism
2. No impermanence loss
3. Constant sum algorithm
QCAMM mechanism
QCAMM (Quoted Price and Constant Sum Based Automated Market Maker) is a financial derivatives transaction protocol based on external quotations and dynamic rates based on constant sum formulas.
The price of the transaction is not determined by an algorithm like AMM, but is obtained by weighting and averaging quotations from multiple oracle machines and DEXs. Specific algorithm:
Platform price=X1*Y1+X2*Y2+X3*Y3+……
X1, X2, and X3 represent different external data sources. Current sources include uniswap, Mdex, chainlink, OpenOracle, pancake, etc.
Y1+Y2+Y3+...=1, Y1, Y2, Y3 are weighted ratios
no impermanence loss
In the AMM model, everyone can become a liquidity provider. Users put their assets into the liquidity pool to earn transaction fees, but they also face impermanent losses caused by currency price fluctuations.
The impermanent loss is due to the fact that two digital assets need to be mortgaged at the same time in the AMM model. The fluctuation of the currency price will lead to changes in the ratio of the two digital assets at the time of investment, resulting in temporary losses. In dFuture, only USDT is required to be mortgaged, so there is no impermanent loss.
constant sum algorithm
The dFuture system uses a constant sum formula (X1 + Y1 = Z1, Z1 value is constant) to control the naked position of the platform to 0 as much as possible, so that the risk of LP is reduced to 0, making it close to risk-free profit.
The dynamic fee and interest algorithms in dFuture both use constant and publicity. Take the handling fee of 0.03% as an example:
The constant sum of both long and short sides is 0.06%. When one party’s position changes, the handling fee that needs to be paid increases, and the corresponding opposite party’s handling fee decreases, and the sum is constant at 0.06%. When one party’s position is large enough , the other party will no longer pay the handling fee. On the contrary, the platform will return the handling fee, that is, if the handling fee in the table has a negative value, the sum will remain constant at 0.06%.
Similarly, the position interest is also adjusted based on this constant sum algorithm.
trade
trade
dFuture currently supports the trading behavior of 12 digital assets including BTC, ETH, UNI, FIL, BNB, etc. Users can choose the digital assets they want to trade on this interface to go long or short, and the maximum leverage is 30 times.
fluidity
fluidity
The liquidity pool mentioned in the article refers to this pool.
The liquidity pool is what we mentioned before, a pool without impermanent loss. Players invest in USDT to add liquidity, and according to the proportion of players' investment, they will receive DFT mining rewards in accordance with the corresponding proportion. (Note: DFT is the platform token of dFuture) Players can redeem the USDT they put into the liquidity pool at any time, and a 0.5% handling fee will be deducted for the redemption.
The liquidity pool has an accelerated design. Players can mortgage DFT to accelerate and get more DFT. The platform stipulates that 1DFT can accelerate 2USDT, and the accelerated USDT amount cannot exceed twice the current mortgaged USDT amount.
For example, I injected 10,000 USDT into the liquidity pool to add liquidity. If I want to continue to accelerate now, I can inject up to 10,000 DFT (equivalent to 20,000 USDT), which is equivalent to I injected a maximum of 30,000 USDT, and I received DFT mining income in proportion to the 30,000 USDT.
Speculation: The liquidity of the dFuture platform should also be provided by the liquidity pool, which has nothing to do with other pools. The pledge amount of the liquidity pool represents the transaction depth of the platform.
LP Token Mortgage
The LP pool mentioned in the article refers to this pool.
Players add DFT/BNB liquidity on Pancake (heco chain is on BXH) to obtain LP Token, and then return to dFuture's LP pool for mortgage.
There seems to be no difference between the LP pool and the dual currency pool in other DeFi projects, and there are also impermanent losses, which is why the APY in the LP pool is high.
According to the distribution of platform fees in the dFuture white paper, the handling fees and interest of platform profits, of which "20% is used for liquidity mining in the second pool of third-party dex", which is the LP pool here.
According to the distribution of the platform token DFT in the dFuture white paper, "30% of DFT is allocated to LPs that provide liquidity mortgages for the platform, and LPs receive 30% of the DFT in the middle proportion of LP income according to their mortgage ratio", which refers to the above mentioned to the liquidity pool.
Another 15% of the DFT allocation, "15% is provided to users who provide liquidity for DFT on MDEX and PancakeSwap, that is, LP Token mining", and this 15% allocation is given to the LP pool. (Note: The liquidity on the heco chain is currently added on BXH, which is different from the MDEX mentioned in the early white paper, but the distribution should not change)
DFT Mortgage
Players in this pool mortgage DFT and can get two parts of dividends. According to the content of the white paper, "40% is used for airdrops to DFT stakers and is transparent on the chain", which is the first part of the dividend. For the other part, when the platform service fee or the profit and loss of the interest pool increases by 100 USDT, the dividend will be distributed according to the DFT ratio of the player's mortgage.
Finally added:
1. Distribution of platform handling fee and interest surplus:
40% is used for airdrops to DFT stakers and is transparent on the chain;
20% for repurchase and destruction of DFT;
20% is used for the team as operating expenses;
20% is used for liquidity mining in the second pool of third-party dex.
2. DFT distribution:
30% - Trader's profit
30% - LP proceeds
15% - LP Token Mining
10% - Team
10% - Private placement
1% - FOMO
3% - Airdrop
1% - Community Rewards