Futureswap V3: The future is bright

Get ready for lower gas fees, more assets, and even more competitive pricing on Futureswap V3.

When we launched Futureswap V2, we wanted to create the best perpetual exchange on Ethereum. However, we always knew that came with scaling limits.

As we get ready to deploy V3 on Arbitrum — a secure and scalable L2 — we can start to deliver on all of the things we initially set out to do: decentralized perpetuals that are more capital-efficient than any other exchange on a wide array of tradable assets.

We’re excited to share with you a breakdown of new and improved features for our upcoming V3 launch.

50x cheaper transactions on trades of all sizes

To ensure the absolute highest security before L2s were productionized, we deployed V2 on Ethereum Mainnet.

And while that helped us get to production, we’ve always known that because only large traders could take the hit on gas fees (a small percentage of their large trades), the fees effectively made Futureswap a whale-only protocol.

In fact, over the last 6 months, gas fees have averaged over $100 per transaction, with the highest sitting around $2,300. Despite those huge gas fees, V2 still performed over $4.2 billion in volume 🚀.

We are excited to announce that for Futureswap V3 we will deploy on Arbitrum, a secure and scalable L2 that enables us to massively reduce gas fees and make transactions 50x cheaper for trades of all sizes.

Save the whales with even better price execution 🐋

With V2, we competed against order books with a game-changing optimized AMM that significantly reduced slippage, even on large trades. With just $100M of liquidity passively provided, a $1M trade could execute with a 0.5% price impact.

For V3, we’ve optimized our AMM even more, to provide superior price execution. Additionally, users can set price bounds on trades to enable FOK (Fill or Kill) order types.

More tradable assets, all controlled by you

For V3 we’ve also expanded the Decentralized Oracle Network so that it’s more scalable for multiple assets.

Want to add leverage to your favorite crypto asset? All you have to do is get enough of the Futureswap community to back your proposal and it’ll be automatically added as an exchange.

To enable this, we’ve expanded the oracle network so that it’s more scalable for multiple assets. By doing this, we’re giving users greater variety and ultimately generating more value for you, the protocol, and our liquidity providers.

Composability AND live pricing

When we deployed V2 on Layer 1, we had to decide between a protocol that had composability or a protocol with live price execution. Because our mission has always been to provide the best price execution for traders, we had to make the tradeoff of choosing live pricing.

However, now that Layer 2 is a secure and viable option, we don’t have to make that tradeoff anymore.

That means we can provide both live pricing and composability on V3. It will now be far easier for anyone to build on top of Futureswap to enhance their trading or liquidity-providing strategies.

So, if you want to integrate Futureswap with your own frontend or build on top of us or use our API to build a UI suited to your strategy, you’ll be able to do that from the moment V3 launches.

Provide liquidity with just USDC

On V2, liquidity providers needed to deposit USDC and the asset token of that particular exchange (for example, ETH) to start earning yield. The downside of having to provide equal ratios of tokens was that it exposed liquidity providers to impermanent loss.

For V3, we’ve fixed that. Now, you’ll only need to deposit USDC to earn yield without being exposed to impermanent loss. When a trader borrows from the USDC pool for their leveraged trades, liquidity providers and the protocol will earn 100% of the trade fees generated.

A simpler, cleaner exchange experience

For V2, we received feedback from users that it was non-ideal to manage multiple positions on each exchange.

So, for V3, we improved the trading experience so that there is only one position per exchange. Traders only have to manage the value of one open position, which can be modified by adding or removing collateral or changing leverage.

Stake FST, earn more FST 🌱

Soon after launching V3, you can stake FST to an oracle.

Staking provides value to the protocol by adding economic security to the network. In return for giving the validators permission to vote on your behalf and helping to secure the protocol, you’ll be able to earn yields in the form of more FST.

Of course, there are risks — if your validator is dishonest or has significant downtime, you may get slashed in order to compensate liquidity providers — but the upsides are significant.

The protocol’s growth is supported by the community — you, the stakers, liquidity providers, and traders — and in return, it gives back in the form of competitive price execution and dependable APY.

Treasury unlocked 🔑

After we launch, a portion of all the fees Futureswap generates will go towards a treasury that is governed by FST holders.

We’re on a mission to provide so much value to our userbase that the fees generated could be among the highest in DeFi. We can’t wait to see how you vote to use the proceeds!

A fairer, more democratic approach to trader incentives

With V2, we noticed a problem with bots placing large wash trades to earn FST tokens. While the fees generated from this provided some APY for our liquidity providers, it prevented genuine traders from earning their fair share of FST.

For V3, we’ve engineered a new approach to trader incentives to make them fairer and more democratic, giving everybody that uses the protocol more opportunity to earn FST and have a say in our future.

Plus, you’ll also be able to earn and claim your incentives for trading and providing liquidity continuously.

A huge step towards becoming the most capital-efficient DeFi exchange

V3 isn’t just a few tweaks and changes. It’s a complete and carefully audited rewrite of V2 that takes a huge step towards making Futureswap the most capital-efficient DeFi exchange.

We’ve been hard at work developing V3 for months and now we’re in the final stages of getting ready for Testnet. Once it’s been rigorously tested, we’ll gather feedback, implement any changes and then get ready to go live.

We can’t wait for you to use it.

Want to stay in the loop? Join us on our Discord to interact with the team and community (and share some spicy memes). You can follow us on Twitter for updates, too.