Introducing YFX V4, The Optimal Solution for Decentralized Perpetual Protocol

The
current
decentralized
perpetual
protocols
are
mainly
divided
into
4
modes:
The
PvPool
mode
adopted
by
GMX,
YFX,
gTrade,
etc.,
the
centralized
order
book
trading
with
the
decentralized
margin
mode
like
Dydx,
Apex,
Pancake,
the
leveraged
token
trading
mode
of
Uniswap
by
Perpetual
Protocol,
and
the
mode
of
developing
a
separate
public
chain
dedicated
for
trading.

As
one
of
the
earliest
launched
decentralized
perpetual
contract
protocols,
YFX
started
in
2020.
After
three
years
of
development
and
three
version
iterations,
YFX
handed
over
the
project
to
the
geek
community
in
early
2024,
jointly
managed
by
the
anonymous
representative
0xEuler
and
multiple
technical
community
developers.
The
new
team
conducted
a
comprehensive
design
and
development
of
the
YFX
product,
and
released
YFX
V4
to
the
public.

Story
of
YFX

V1:
Development
of
YFX
V1
began
in
2020
and
was
first
released
at
the
beginning
of
2021.
As
one
of
the
pioneers
of
decentralized
perpetual
contract
products,
YFX
introduced
the
PvPool
trading
model,
bringing
Contract
for
Difference
(CFD)
onto
the
blockchain.
After
nearly
three
years
of
development
in
the
decentralized
perpetual
contract
industry,
trading
models
such
as
PvPool,
and
centralized
price
feeding
have
been
adopted
by
leading
protocols
like
GMX
and
GNS.

V2:
In
the
YFX
V2
version,
we
added
features
such
as
position
merging,
funding
fees,
limit
orders,
and
stop-loss/take-profit,
successfully
transitioning
from
CFDs
to
true
perpetual
contracts.

V3:
YFX
V3
included
additions
like
ChainLink
price
feeds,
dual
position
mode,
interest,
invitation
systems,
and
merged
liquidity
pools,
making
the
protocol
more
comprehensive.

Features
of
YFX
V4

1. 
   LP
   Leverage

Unlike
traditional
CEXs
like
Binance
and
BitMex,
where
traders
(Takers)
and
market
makers
(Makers)
trade
in
the
same
model
and
can
engage
in
up
to
100x
leverage
trading,
in
most
decentralized
perpetual
contract
products
including
YFX,
GMX,
and
GNS,
traders
trade
with
liquidity
pools,
preventing
Makers
from
using
leverage.
This
results
in
low
capital
efficiency
for
LPs.

YFX
V4
introduces
an
innovative
solution
to
this
issue
by
providing
leverage
to
LPs,
allowing
them
to
use
up
to
200x
leverage
when
adding
liquidity.
This
means
LPs
can
buy
the
liquidity
pool’s
YLP
at
200x
leverage,
multiplying
their
profits
by
200
times
when
the
YLP
price
increases,
though
this
also
introduces
greater
risk.

2. 
   Fair
   Index
   Price
   Oracle:

In
the
product
design
of
YFX
V4,
we
further
optimized
by
introducing
real-time
prices
from
two
leading
market
oracles,
ChainLink
and
PYTH,
as
the
index
price
for
YFX,
ensuring
the
fairness
and
transparency
of
index
prices.

ChainLink
solution:
We
use
ChainLink’s
DataStream
and
Automation
to
execute
market
orders
and
determine
if
limit
orders,
stop-loss/take-profit,
and
liquidation
should
be
triggered.

Pyth
solution:
We
accept
real-time
prices
published
by
PYTH
and
verify
signatures
using
Pyth’s
official
contracts.

3. 
   New
   LPB-AMM

In
YFX
V4,
we
introduce
a
new
LP
Balance
Automated
Market
Maker
(LP-AMM)
model.
The
trading
depth
for
users
is
determined
by
the
LP
Balance.
The
more
LP
Balance
there
is,
the
better
the
trading
depth
for
users,
and
vice
versa.

In
the
classic
UniSwap
AMM
model,
the
x*y=k
curve
is
used
to
calculate
the
market’s
liquidity.
In
the
LP-AMP
model
of
YFX,
we
introduce
a
new
y=kx+b
function
and
use
a
segmented
function
to
simulate
the
depth
chart
in
CEX,
ultimately
achieving
a
depth
chart
similar
to
the
one
below.

4. 
   Premium,
   Market
   Price

The
V4
system
adjusts
the
Premium
and
Market
Price
based
on
the
net
direction
of
traders’
positions,
aiming
to
maintain
a
balance
between
long
and
short
positions.
Specifically,
when
traders’
net
positions
are
long,
the
Premium
is
positive,
and
the
Market
Price
is
higher
than
the
Index
Price.
This
increases
the
cost
of
opening
new
long
positions,
suppressing
the
formation
of
new
long
positions. 

5. 
   New
   Earning
   System

YFX
will
initiate
its
first
mining
event
after
migrating
to
Arbitrum,
including
YFX
Staking,
Position
Mining,
LP
Mining,
Trade
Mining,
and
Invite
Mining.

Under
this
incentive
system,
all
platform
participants,
including
Traders,
Makers,
and
inviters,
will
receive
appropriate
rewards.

6. 
   Up
   to
   70%
   Referral
   Rebate

Thanks
to
YFX
being
a
decentralized
exchange,
every
transaction
fee
can
be
returned
in
real-time
to
the
inviter’s
address,
allowing
us
to
execute
any
rebate
strategy
transparently.
YFX
V4
designed
a
tiered
referral
system
that
offers
up
to
20%
fee
discounts
and
75%
fee
rebates.
High
ratio
rebates
facilitate
better
cooperation
with
community
nodes,
making
it
easier
for
YFX
to
acquire
trading
users
and
build
a
large
trading
community. 

Conclusion:

In
summary,
YFX
V4,
as
a
decentralized
perpetual
contract
protocol,
is
committed
to
providing
a
fair,
efficient
trading
environment.
It
introduces
various
innovative
mechanisms,
such
as
LP
Leverage,
LPB-AMM,
and
Premium,
aimed
at
optimizing
capital
efficiency,
increasing
trading
depth,
and
maintaining
overall
market
balance
and
stability.
Through
a
series
of
designs
and
optimizations,
YFX
V4
aims
to
offer
users
a
fair,
transparent,
liquid,
and
innovation-driven
decentralized
perpetual
contract
trading
experience.

Website: https://www.yfx.com/?ref=PR

Telegram: https://t.me/YFX_COM

Twitter: https://twitter.com/YFX_COM

Medium: https://yfxdefi.medium.com/

Contact:

0xEuler
Ludwig

Email:

[email protected]

Disclaimer:
The
information
provided
in
this
press
release
is
not
a
solicitation
for
investment,
nor
is
it
intended
as
investment
advice,
financial
advice,
or
trading
advice.
It
is
strongly
recommended
you
practice
due
diligence,
including
consultation
with
a
professional
financial
advisor,
before
investing
in
or
trading
cryptocurrency
and
securities.