Good day everyone!
Today I want to give you brief look about another strong partnership between Sei Network and Cypher.
So, let’s start!
Cypher protocol
What is Cypher?
Cypher it is trading platform build on Solana blockchain, users can use Cypher like traditional DEX with peer-to-peer margin system that collateralized by USDC, BTC, ETH, and SOL, also users can use derivatives market that use USDC as collateral. Traders will have to maintain proper collateralization requirements in the trading account, ensuring protocol safety.
What is bring Cypher to users?
At first, it is easy and useful margin system, the protocol will mimic certain mechanisms from traditional finance enabling traders to have long, short, and levered positions.
The second, users can open multiple sub accounts, and manage this account with master account. Sub accounts are where traders will open and close positions, while the master account stores important data about the number of sub accounts and c-ratio information. Traders will interact with their master account when they would like to view their positions across all of their sub accounts.
Several Cypher key points:
Trading — trading include:
· Spot — Cypher enables margin on Openbook’s spot markets with shared liquidity between Openbook and Cypher
· Perpetual Futures with 10x available leverage.
· Dated Futures with also 10x maximum leverage and oracle system at expiration
· Physical Delivery — it means that you can select dated futures markets will be enabled for physical delivery. On these markets, settlement at the market’s expiry will occur by shorts delivering the asset to longs.
Borrowing and landing include:
· Spot Markets — Each collateral asset will have its own borrowing and lending pool, with lending dynamics unique to each asset
· Derivatives Markets — Long positions are margined in USDC, paying interest on their borrows according to the utilization of the USDC lending and borrowing pool.
· Protocol Borrowing/Lending Dynamics — Any trader that deposits USDC in a sub account contributes to the pool of available USDC, and is compensated according to the linear-piecewise interest rate curve.
Oracle system:
· Pyth oracle network to track the underlying for each market.
· Oracle will be responsible for off-chain and on-chain pulling data.
· Use oracle for settling to the appropriate price of the particular underlying when market expiry (for represented by the given futures market)
· Launch markets without price feed in pre-IDO cases.
Guaranty Fund — Initially, the guaranty fund will be funded by 30% of all protocol fees.
Orderbook — a peer-to-peer (p2p) traded orderbook prevents LPs from suffering from impermanent loss, which is always possible with an AMM style DEX.
Conclusion:
So, Cypher it is useful and easy to understand trading platform with traditional DEX featured and few unique options for users. In Cypher docs I didn’t find any information about integration to Sei blockchain and Cosmos blockchain in general, but I guess I future it will be possible, because this partnership should be connect to Cosmos or Sei on blockchain level, will see.
Thank you for your attention Seilors!
Cypher app: https://cypher.trade/
Cypher docs: https://docs.cypher.trade/cypher-docs/
Website: https://www.seinetwork.io/
Twitter: https://twitter.com/seinetwork?s=21&t=9rvYNloOelen7N3u215q8w
Telegram: https://t.me/seinetwork
GitHub: https://github.com/sei-protocol
