Following the recent complete depreciation of our Perps V1 on Polygon PoS, both our users and those of our partners are now enjoying the benefits of our new and ultra-efficient Perp DEX. With user efficiency and profitability in mind, this updated Perp DEX is not just a replacement, but a significant upgrade that offers superior functionality and opportunities for traders.
Let’s delve deeper into the operation of this new Perp DEX and explore the myriad advantages it offers.
1️⃣ Aggregation
Metavault Perp V2 is a comprehensive service that aggregates the major Perp DEXs available on each chain supported by our DeFi hub, which currently includes 12 chains. This mechanism allows for the efficient settlement of orders by automatically selecting the most efficient exchange for each transaction. Regardless of where the trade is initiated, Metavault Perps V2 will settle it by considering all available chains to provide users with the best possible execution.
This ensures that users get the most favorable conditions for their trades, optimizing efficiency and profitability. The system is designed to handle the complexities of multi-chain trading while providing a seamless user experience.
In essence, by trading with our Perps V2, traders can enjoy the best execution for their trades and reap the benefits across all chains without having to leave the chains or perform additional actions. Simply initiate your trade on, for example, Linea, and we will optimize the trade across more than 11 chains for you. As you hear more about chain abstraction, remember that Metavault has been developing this concept for over a year. This Perps V2 is the first step in this journey.
2️⃣ A single hub for all trading needs
Metavault Perps V2 allows users to trade with leverage of up to 100x across various assets:
- Cryptocurrencies
- Commodities, providing options for those who prefer tangible, traditional assets like gold
- Forex, allowing users to speculate on fluctuating currency values such as EUR, USD, JPY
- Indices, giving traders the chance to profit from broad market movements rather than focusing on individual stocks
In addition to trading with this range of leverage across these four asset classes, traders can execute all types of orders, including market orders, various types of limit orders (TP, SL), as well as the reduce position size function.
What’s more, Metavault Perps V2 introduces the trailing stop loss feature. This order type allows the stop loss level to move with the market, potentially locking in more profit and limiting downside risk.
You can learn more about this feature by reading our dedicated article here.
The addition of this feature further enhances the platform’s comprehensive suite of tools and features, providing traders with even more flexibility and control over their trading strategies.
And it is already live on Metavault!
3️⃣ Enhanced Security
Everything happens on-chain, and our price feeds across all chains where we execute orders are secured by not only one provider, but three providers in total:
In other words, our Perp DEXs rely on at least two out of three providers on each chain, ensuring that if one provider encounters an issue, another one can automatically step in. This model ensures the ability to manage positions continuously, even if one infrastructure is down. On top of that, both are acting within a threshold as reference price against each other.
And there’s more!
Our contracts are audited by a top-tier audit firm, Hacken, and are also being constantly monitored in real-time by Hypernative. Hypernative offers continuous monitoring of key metrics and on-chain activity, issuing alerts in case of any abnormal activity.
Security, transparency, and efficiency are the keywords of Metavault.
4️⃣ Functioning
Our Perp DEX is designed with a unique feature that sets it apart from others: it has individual pools on each chain for each collateral asset. This architecture provides multiple benefits such as asset isolation, payouts, and the possibility to manage open interest. This is a significant shift from the common GMX type vAMM model, which in our analysis, has several drawbacks and constraints that limit its efficiency and functionality.
One of the most notable advantages of our mechanism is the enhanced level of control it offers to liquidity providers. Specifically, the Open Interest in a collateral is confined to that collateral, meaning that all trades using USDC pay fees to only the USDC collateral pool. Furthermore, this pool is only exposed to the PnL of traders using USDC as collateral.
This mechanism allows liquidity providers to manage their risk in a more effective manner and optimize their ROI. This results in a more efficient and profitable environment, attracting theoretically more liquidity providers, activating a virtuous circle benefiting all stakeholders: more liquidity, more OI, more volume, more fees, more LPs 🔁
Moreover, our model also provides benefits to traders, as they can enjoy faster transaction execution, as well as a deep Open Interest. Above all, traders have the flexibility to settle and trade in their preferred collateral asset. This means that our model allows you to recover the asset you want without incurring extra fees, greatly improving the UX of traders.
ELI5: what is the main difference for traders in comparison to a GMX-like Perp DEX?:
- GMX-like Perp DEX: if you long Matic, you’ll receive Matic, even if you used USDC as collateral for your position
- Metavault Perps V2: if you long Matic by using ETH as collateral, the PnL of your position will be paid in ETH and not in Matic.
In simpler terms, if you select ETH as your collateral asset, it will be your reference asset for your PnL, and when you close your position, you will receive the combination of your collateral and PnL in ETH. It’s that simple.
It’s that simple!
Note that the fees for LP are directly accumulated into the LP position with PnL.
In conclusion, our Perp DEX design aims to provide a more efficient, effective, and profitable trading environment for all participants. You can benefit from this right now on Linea, Polygon PoS, Polygon zkEVM, Kava EVM, and soon on BNB, opBNB, Kakarot zkEVM, with many more chains coming in the near future.
