The DEX for the Interoperable Future
[Updated: 2nd March 2022]
Decentralized Finance, or DeFi in short, has developed by leaps and bounds since its inception. The collective goal of all DeFi builders is to create a blockchain-based financial system that is free from the shackles of central financial intermediaries. From these efforts, come decentralized exchanges (DEXs).
Uniswap, launched on Ethereum in 2018, saw their monthly trade volume being in the tens of billions dollars 3 years since inception. This signifies the era of DEXs is approaching. However, with growth comes growing issues such as impermanent loss, low throughput and high slippage. Undoubtedly, solving these issues is the key to usher mass migration of traders into the decentralized world.
We at Sat.is are developing the FIRST Multichain Order Book DEX which is able to address the aforementioned issues. By deploying on Layer 2 chains and other faster blockchains, Sat.is is able to provide a smooth and seamless trading experience for traders and maximize capital efficiency for LPs. On top of these, traders and LPs are the only custodians of their own funds while interacting with Sat.is.
Why Sat.is?
Best In Class Perpetual Contracts Trading Experience
The one thing that traders hate while using DEXs is high slippage. Seeing your profits get eaten up due to low levels of liquidity is truly an unpleasant sight. This effect is amplified when trading with leverage.
With that in mind, Sat.is’ carefully thought out architecture would ensure sufficient liquidity for all trading pairs at all times. Sat.is utilizes an algorithm that optimizes liquidity from L/S-AMM and Sigma Mining when placing orders on the order books, thus maintaining minimum spread. With this liquidity optimization, traders can expect zero slippage while trading.
High throughput and low latency are essential to replicate the best trading experience. Sat.is is a multichain decentralized exchange that will first launch on Boba, Arbitrum and Polygon. These Layer 2 solutions are high performance chains that are able to process significantly more transactions per second when compared to Ethereum. With plans to launch on multiple other high performance blockchains in the future, including but not limited to, Solana, Fantom, Avalance and NEAR. Sat.is is capable of providing a high speed and low transaction fees trading environment for traders.
Besides, traders are able to utilize advanced order types on Sat.is in strategizing their trades, hence mimicking trading experiences on CEXs whilst having their funds fully under self-custody.
Long/Short-Automated Market Maker (L/S-AMM) Pools with Zero Impermanent Loss and High Leveraged Real Yields
Liquidity in traditional AMM pools are prone to impermanent loss, leading to reduction of yields for LPs.
Sat.is deploys a unique Long/Short-Automated Market Maker (L/S-AMM) feature to tackle this issue. Under L/S-AMM, LPs only need to provide a single type of stablecoin (USDC or USDT) in the pools, enabling them to have no impermanent loss.
Under traditional AMM, the APR on LPs’ funds ranges from 10% to 25% on ETH and BTC stablecoin pairings (eg. ETH/USDC, BTC/USDC, etc), with impermanent loss being a yield dampening factor.
At Sat.is, L/S-AMM are equipped with leveraged trading pools for pairs with leverage trading available. There are two types of leveraged trading pools, the 3x L/S pools and 5x L/S pools. LPs will be able to enjoy significantly higher real yields by providing liquidity in these pools. For risk-averse LPs, unleveraged trading pools are available as well. All yields will be earned in stablecoin.
Sigma Mining Enabling High Capital Efficiency
The question in DeFi going forward will be “How do we improve capital efficiency?”
Total Value Locked (TVL), whilst an important indicator, is not without its flaws. The narrative of capital utilization rate being a more accurate yardstick of a DApp’s performance has been on the rise. We at Sat.is couldn’t agree more!
Our Sigma Mining feature is a modified and improved version with the aim of enhancing LPs’ capital utilization rate.
Unlike other DEXs and protocols, Sat.is’ Sigma Mining pools do not go by “trading pairs”. Instead, the pools are separated by the type of stablecoins, for example there is only one pool each for USDC and USDT. This modification allows for LPs’ capital to be more efficiently used, as whenever there is a trade (regardless of trading pairs), LPs’ funds within range will receive a pro-rata predetermined percentage of the rewards.
LPs are incentivized by being rewarded with our native token, $SATIS for providing liquidity and enabling minimum spread on all trading pairs.
Conclusion
Sat.is is reshaping decentralized trading and liquidity providing by addressing the pain points of current DEXs in the market. This will be an exciting journey and we are just getting started. There are tons of new features lining up on our roadmap which will further improve user experience and benefit $SATIS token stakers. We look forward to having you on the journey.
What’s Next?
Stay tuned for our latest community news in Discord, which includes but not limited to Alpha Testnet, Beta Testnet, OG Osiris role and Wen $SATIS token?
Feel free to contact us at: team@sat.is
Stay tuned for latest updates:
Discord: https://discord.gg/ErSH6TzsUM
Twitter: https://twitter.com/SatisDEX
Telegram: https://t.me/Satis_Channel
