LP Pools on Syndr
Syndr enable retail investors to provide liquidity on Syndr via LP pools. The Syndr exchange accounts and backend is built with modularity in mind where we envision multiple LP vaults functioning alongside our orderbook and block-trading mechanisms.
- Syndr LP Pools - retail users providing liquidity
- Syndr Orderbook - professional market-makers providing liquidity
- Syndr Block-trading - Institutional Liquidity integrations
- Syndr Structured Products - retail focused strategies driving regular periodic volumes to our exchange
People often characterise order books as competing with AMMs. However, we believe there is a world where they can work together in which an AMM acts as a market maker on an order book. In this scenario, the AMM consolidates liquidity and allows retail users to offer pricing to traders, whilst professional market makers can offer pricing directly into the order book. This also reduces the order book’s dependence on professional market makers, encouraging decentralisation.
Syndr Account Types
Syndr supports 3 types of accounts on the exchange, which share some common parameters. Every Account is tied to an ethereum address. This unified account structure is at the heart of our exchange supporting different trading mechanisms.
- Normal Accounts— for users on the platforms
- LP Pool Accounts—for different types of on-chain LP AMM Pools where account address is actually a smart contract
- Structured Product Accounts—for different types of structured product vaults where account address is also a smart contract
With core account properties the same, the risk limits for these three types of accounts are represented differently with these being customisable per LP Pool Account or Structured Product Account.
How will users trade against LP Pools?
LP pool trading flow looks like as follows —
- Select an instrument
- If there’s no orderbook liquidity, they can get a quote from LP Pool
- Request Quote from LP Pool & Enter Position size required
- Accept Quote
- Trade processes successfully
Syndr Perpetual LP Pool Mechanics
The Perpetual LP Pool works very similar to GMX/GLP pool but with a bid/ask quote spread and a price impact which is updated after every trade.
For Perpetual Traders
- Traders can open perp positions with Syndr Perpetual LP Pool acting as a counterparty
- Traders request perp positions quotes from the Perpetual LP Pool
- Perpetual LP Pool quotes both bid/ask side with a spread
- Perpetual LP Pool quote spread is a function of mark prices, margin balance and LP Pool’s risk limits
- Trades against Perpetual LP Pool occur a price slippage similar to trading on the Orderbook
- There are limits to position’s size which can opened through Pool as a counterparty.
For LPs in Syndr Perpetual LP Pool
- LPs can mint/redeem Syndr Perpetual LP tokens by depositing supported collateral assets
Syndr Option LP Pool Mechanics
For Option Traders
- Option Traders can open options positions with Syndr LP Pool acting as a counterparty
- Traders request option positions quotes from the Options LP Pool
- LP Pool is able to access the option market's IV surface, made available via an on-chain oracle contract, to offer competitive bid-ask quotes
- Options LP Pool quote spread is a function of mark prices, margin balance, IVs and LP Pool’s risk limits
- Trades against Options LP Pool occur a price slippage similar to trading on the orderbook
- There are limits to positions which can opened with Pool as a counterparty.
For LPs in Syndr Option LP Pool
- LPs can mint/redeem Syndr Option LP tokens by depositing supported assets
- LP pool’s DeltaTotal is hedged using futures periodically(or when above a given threshold) to maintain delta-neutrality
Syndr Structured Products
Syndr will launch sophisticated structured products which will leverage the variety of derivative markets available on Syndr exchange.
Structured product offerings on Syndr will be graded by their risk-reward profiles and users can choose the strategies according to their risk profiles.
Deposits & Withdrawals
We will support 1-click cross-chain withdrawals and deposits to our vaults via our partner Socket (opens in a new tab)