SynFutures V3

Derivatives

SynFutures is a permissionless derivatives exchange that enables trading of any asset with a price feed.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
SynFutures enables leverage trading of nearly any asset with a reliable price feed due to its isolated pool design. V3 (Oyster AMM) enables greater capital efficiency with its concentrated liquidity model.
What we like less
The protocol still has a privileged role that plays a critical role in governing protocol-wide operations.
What it means for you
Offers you a way to trade and earn yield on long-tail assets that otherwise would be not suitable for other decentralized perpetual exchanges.
Information
Exploit/Hacks
None
Info
Key Metrics
  • TVL: $57.6M (Rank #86)
  • TVL Ranking by Derivatives: #4
  • Blockchain: Blast, Arbitrum, Polygon
  • Chain TVL
    • Blast: $57.6M
    • Arbitrum: $3.86K
    • Polygon: $0
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; Quantstamp
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Latest protocol version launched recently in 2024; maturity less than three months increases technical risk as smart contracts are not battle-tested
  • Top 20% by total value locked slightly reduces risk
  • Core contracts can be upgraded with just an EOA wallet
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • No governance token and/or contracts are fully immutable
Protocol Design
  • No death spiral concerns
  • Robust controls to mitigate oracle price manipulation
  • This protocol is susceptible to risks related to decentralized derivatives, such as LPs serving as the counterparty for all platform traders
Things to know about SynFutures V3

How SynFutures V3 works

SynFutures V3 introduces the groundbreaking Oyster AMM, an evolution of the Synthetic Automated Market Maker (sAMM) model that defined its predecessors. By harnessing the lessons learned from V1 and V2, V3 embarks on a journey to redefine liquidity provision and trading efficiency in the crypto derivatives market. Oyster AMM emerges as SynFutures' answer to the inherent inefficiencies of traditional AMMs. This novel model significantly boosts capital efficiency, enabling liquidity providers to maximize returns with minimal capital. It accomplishes this feat through concentrated liquidity, allowing capital to be allocated within specific price bands, closely mirroring the order book model's capital concentration around the last traded price. V3's Oyster AMM merges the concentrated liquidity concept with the synthetic AMM model from previous versions. This hybrid allows liquidity providers to contribute to any trading pair using a single asset—the Quote asset—while the Base asset is synthetically generated. The model introduces a leveraged concentrated liquidity approach, uniquely tailored for derivatives trading. SynFutures V3 stands out by incorporating a fully on-chain order book alongside its AMM, offering traders native limit orders akin to centralized exchanges. This integration ensures zero-slippage trades under specific conditions, enabling greater capital efficiency and seamless trading experiences that blend the best of AMMs and order books.

How SynFutures V3 manages risk

SynFutures V3 uses multiple features to safeguard its user base and ensure system integrity. First, all liquidity pools on SynFutures are isolated from one another. This means an exploit for a specific trading pair will not have a follow-on impact on LPs in other pools. V3 introduces dynamic penalty fees and a stabilized mark price mechanism. These features are designed to discourage price manipulation and smooth out price fluctuations, safeguarding against sudden market movements and potential liquidations. To further prevent oracle-related vulnerabilities like flash loan attacks, SynFutures does not use the raw spot price from the oracle directly but instead undergoes a specific exponential moving average (EMA) method to smooth the fluctuation. This ensures that the spot price cannot be easily manipulated. The protocol also has an Emergency Freeze mechanism that will freeze a pair and settle it at the prevailing oracle price if its fair value deviates significantly from the mark price (beyond 50%).

How you make money on SynFutures V3

SynFutures V3 is a trading platform, and skilled traders can profit from market dynamics by buying and selling at opportune times. Users can also become liquidity providers by depositing their assets into the Oyster AMM. When adding liquidity, a long position is created for the liquidity, and an offset short position is created for the LP. The sum of these two positions is the net position of the LP. Currently, SynFutures charges 0.05% for market orders and 0.03% for maker rebates and LPs.