Understanding Olyex.finance

At present, more than 20 types of leverage trading protocols have been deployed on various blockchains. However, as these protocols rapidly develop, obstacles begin to emerge. Liquidity is scattered across different protocols, resulting in underutilization of available liquidity. Despite the dispersal of liquidity among different chains, there currently isn’t a single protocol that can effectively leverage cross-chain liquidity. The pricing mechanisms and margin parameters of different protocols differ significantly, making it difficult for traders to obtain the best pricing and trading experience.

Olyex is a decentralized perpetual contract exchange that supports multi-chain shared liquidity. It is first deployed on ZKSync era and will sequentially support Arbitrum, BNB Chain, Avalanche, and Fantom. Olyex is committed to providing our users with the best trading experience, zero slippage, and a seamless user interface.

Core Highlights of Olyex.finance

1.Traders can use the Olyex protocol for zero price impact trades, up to 100x leverage, zero slippage in asset prices, and no counterparty risk.

2.Liquidity on Olyex will be optimized in margin trading to achieve a high utilization rate of the asset pool.

3.Olyex unifies the liquidity depth of deployed networks, thus becoming a multi-chain native trading protocol.

4.In the beginning, this protocol will be deployed on ZKSync and will gradually support Arbitrum, Optimism, BNB Chain, and Fantom.

Multi-chain Shared Liquidity Aggregation Strategy

In the DeFi field, liquidity mining is indeed a common means to attract liquidity, but it also presents some challenges. This is mainly because liquidity providers may chase high APRs and quickly withdraw their funds when the returns decrease, causing liquidity to become unstable.

To address this issue, Olyex has chosen a more sustained and stable approach to acquiring and maintaining liquidity. Firstly, the protocol uses raised funds to purchase OLP tokens, meaning its liquidity partly comes from itself, rather than entirely relying on external “rental”. This method helps the platform maintain more stable liquidity and reduces dependence on external liquidity supply.

Secondly, Olyex reinvests a majority of its protocol income back into providing liquidity, creating a cycle that allows the platform’s liquidity to continuously grow as transaction volume increases.

Olyex adopts an innovative cross-chain liquidity aggregation strategy by introducing a functional component known as the “proxy module,” which enables unified management and scheduling of liquidity across the network. This proxy module acts as an intelligent liquidity manager, responsible for monitoring overall liquidity and reserving necessary liquidity for margin trading. Once a trader submits an order, this module will evaluate the existing liquidity of all deployed networks and complete the order execution, provided it meets the order scale requirement.

With this global liquidity management strategy, Olyex can improve the efficiency of capital use across various networks without the need for substantial migration or consolidation of assets. Such design presents Olyex with multi-chain native characteristics in terms of user experience and network deployment complexity. Leveraging this advantage, Olyex is expected to expand more efficiently to more blockchain ecosystems in the future.

Innovative Liquidity Solution

Automated Market Makers (AMMs) are a key innovation in the decentralized trading (DeFi) field. However, despite their wide acceptance in the market, they still face several significant challenges:

1. Inaccurate price discovery: AMMs set prices through algorithms, which may cause discrepancies between these prices and actual market prices.

2. Impermanent loss: Liquidity providers may suffer non-constant losses when market prices change.

3. Scattered liquidity: Liquidity may be scattered among different AMMs protocols and trading pairs, affecting prices and trading efficiency.

4. Smart contract risks: AMMs protocols are based on blockchain’s smart contracts, which may have code errors or vulnerabilities leading to user fund losses.

5. Capital efficiency issues: The traditional AMM model may not be the most effective way to use capital.

Inspired by gmx.io, Olyex has adopted an innovative liquidity provisioning scheme. This scheme is realized by introducing a basket of index assets called OLP for liquidity provisioning. OLP mainly consists of volatile assets and stablecoin assets, which act as counterparties on the platform. These counterparties borrow from the liquidity pool to open leveraged trading positions. This approach provides traders with more flexible trading opportunities while significantly enhancing the liquidity and stability of the entire platform.

In Olyex’s model, the introduction of OLP (a basket of index-like assets) not only enhances the system’s liquidity but also provides a more diversified and balanced asset portfolio by integrating volatile assets and stablecoin assets. This combination method can better attract and meet the needs of all types of investors.

Additionally, the role of OLP as a counterparty on the platform allows traders to borrow from the liquidity pool to open leveraged positions, adding flexibility to trading strategies. This mechanism takes full advantage of blockchain technology, improving liquidity management efficiency and market liquidity, while laying a solid foundation for the platform’s long-term development and expansion.

Plans for Olyex.finance

Olyex’s goals are not limited to the crypto market. The cryptocurrency market is only the first-stage target of Olyex. Olyex aims to build an auditable, highly transparent self-custody asset trading platform using blockchain technology. Users can trade a variety of financial assets globally, such as government bond rates, stocks, foreign exchange, etc., without the need to trust a third party.

Olyex plans to launch on the testnet at the end of July 2023 and launch the mainnet in mid-August, coupled with a series of trading competitions and incentives. In Q3-Q4, it will support networks like Arbitrum, Optimism, BNB Chain, etc., and continue to optimize the user experience. In 2024, the RWS asset contract will be developed and launched to support on-chain synthetic asset trading, such as stocks, currencies, and commodities. It will continue to promote ecosystem construction, attract more assets into the platform, including providing more tools and support for developers to promote more applications and innovations.

Please continue to follow updates and announcements from Olyex to get the latest information on the testnet release and subsequent developments.

website: www.Olyex.finance

Twitter: @Olyexfinance