The Native Liquidity Layer
Last updated
Last updated
Polynomial Chain’s native liquidity layer provides a unified solution that enhances capital efficiency, user experience, and security. By integrating this robust liquidity layer directly into our L2 solution, we are laying the groundwork for hyper-scaling derivatives and complex financial instruments to rival traditional finance and centralized exchanges.
Capital Efficiency: By enabling future products to share the same liquidity, we ensure LP providers use their capital dynamically across various protocols and dApps built on our Chain. This approach prevents liquidity fragmentation across individual asset pools and enhances overall efficiency.
Seamless User Experience: Users can provide liquidity to different financial products without moving assets between separate pools. This integrated approach simplifies the process, reducing both transaction times and costs.
Enhanced Security and Trust: With natively integrated liquidity, our system is more secure and reliable. Users can trust that their assets are safe and efficiently utilized within our shared ecosystem.
Unified Liquidity Pool: The core of our native liquidity layer is a single, unified pool of liquidity accessible across various financial products, such as perps and prediction markets. This means the same pool can be used for different risk profiles and product types, providing flexibility and efficiency. In other words, an entire ecosystem - ranging from DEXs and lending platforms to synthetics, RWAs, and option markets can all build around a unified liquidity layer, bootstrapping infinite possibilities.
Asset Integration: Initially, our liquidity layer supports assets like USDC, sUSDe (Ethena), and sDAI. We plan to add fluid USD and other assets in the future, expanding the range of options for users as we continue to grow.
Delta-Neutral LP Strategy: Our first product, a cross-margined perps pool called 'Trade,' employs a delta-neutral LP strategy that was successfully used last year on Optimism (OP), garnering over $2.2 million in fees. This product exemplifies our vision for future applications built alongside ours and the successful deployment of other teams' products within our ecosystem. After three years of our team working on Optimism - and most recently on BASE - we hope to inspire others to follow suit.
Hyper Scaling Derivatives: Our native liquidity layer supports the hyper-scaling of derivatives by providing a robust and efficient liquidity pool enabling high-volume trading and the development of complex financial instruments that rival TradFi and CEXs.
User Participation and Rewards: Select communities and users are allocated retro points, which they can claim by depositing into our pool. Our system incentivizes participation and rewards early adopters, fostering a vibrant and engaged community where active participants are greatly rewarded.
Future Innovations: We are committed to continuously improving our liquidity layer and enhancing our chain by adding new assets and developing novel methods for fluid interoperability and composability across all of crypto, both present and future, that leverage our unified liquidity pool.
