Futureswap

What is Futureswap?

Futureswap is a decentralized, non-custodial leverage trading protocol that enables users to gain leveraged exposure on various assets. Liquidity providers (LPs) deposit funds to earn passive income from trading fees and FST incentives. Unlike traditional leverage trading platforms, Futureswap operates as a lending protocol where LPs lend funds while holding collateral.

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Recent Video Interview

Main points of the interview:

• Futureswao's shift from Ethereum to Arbitrum and now Avalanche, focusing on decentralized, non-custodial leveraged trading.
• FutureSwap capitalizes on Avalanche's innovative DeFi ecosystem and community engagement.
• FutureSwap provides leveraged trading on AMM pools, including strategies for delta neutral positions to hedge risks.
• Upcoming features for FutureSwap include limit orders and stop losses, addressing community demands and enhancing the trading experience.

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Trading Flow

Long Trades: Users can open long positions by depositing collateral and specifying the desired leverage. Futureswap utilizes reserves for both assets involved and facilitates the trade via Uniswap v3.

Short Trades: Similarly, short positions are opened by depositing collateral and selling the desired asset for stablecoin. The asset sold becomes the trader's debt, while the stablecoin becomes their equity.

Auto-Deleveraging (ADL)

Auto-Deleveraging (ADL) stands as a fundamental mechanism within Futureswap, designed to ensure the integrity and stability of the platform's leverage trading system. Unlike traditional leverage trading platforms reliant on insurance funds, Futureswap employs a risk-tranched ADL approach. This mechanism automatically closes trades in a prioritized manner, starting with the highest leverage (most risky) trades, to mitigate the risk of insolvency.

By swiftly closing trades that pose the greatest risk, Futureswap minimizes the potential impact on liquidity providers and maintains solvency across all market conditions. Additionally, ADL eliminates the need for an insurance fund, reducing centralization risks and enhancing the platform's decentralized nature. Overall, ADL serves as a crucial safeguard mechanism within Futureswap, ensuring the reliability and resilience of its leverage trading infrastructure.

Fees

• Trade Fee: Futureswap charges a configurable 0.05% trade fee, combined with a 0.05% Uniswap v3 trade fee.
• Funding Rate: LPs profit from a funding rate charged based on the imbalance between longs and shorts, encouraging balance in open positions.
• Time Fee: LPs earn fees from a time fee charged on open trades, encouraging long-term liquidity provision.

How To Earn Incentives

• Trading: Users can earn trade fee rewards and open interest rewards based on their trading activity.
• Protocol LPs: Liquidity providers earn incentives based on the ratio of liquidity they provide compared to the rest of the pool.

Built for Security and Governance

Futureswap places paramount importance on security, ensuring the protection of users' funds through meticulous measures. This includes rigorous testing, continuous code reviews, and audits conducted by reputable firms such as Open Zeppelin and Trail of Bits. These efforts ensure that the platform remains robust and resilient against potential vulnerabilities.

Moreover, Futureswap embraces a decentralized governance model, empowering its community members to actively shape the platform's future. Users have the autonomy to propose new assets for trading and participate in decision-making processes. By fostering a collaborative environment where stakeholders have a voice, Futureswap ensures that it remains aligned with the evolving needs and preferences of its users, promoting inclusivity and transparency within the ecosystem.

Web3 Integration and Community Engagement

• Decentralized and Non-Custodial: Futureswap leverages Arbitrum and Avalanche to offer leverage trading in a permissionless, decentralized manner.
• Community Engagement: Beyond trading, Futureswap fosters a vibrant community with a Discord server filled with memes and discussions on market trends.

Investors and Similar Assets

Futureswap is abcked by Framework, Ribbit Capital, Nascent, IDEO, True Ventures, Three Arrows Capital, Placeholder, Parafi, and 1kx.

Similar assets to FST are Mux Protocol, dYdX, GMX, HMX, Injective, Perpetual Protocol, Vertex, Cap...

Project Development

In a significant milestone, Futureswap launched its V4.1 protocol update on the Avalanche network, marking a pivotal moment in its evolution. This update introduced Trader Joe as the platform's first automated market maker (AMM), enabling the creation of leveraged exchanges on top trading pairs like JOE-USDC and AVAX-USDC, alongside existing pairs such as WETH-BTC and ETH-USDC on Arbitrum. The update expanded the platform's capabilities, allowing traders to manage risk and leverage on a broader range of tokens listed on the underlying AMM.

Additionally, as part of this update, Futureswap collaborated with Celer to enable the bridging of its governance token, FST, between Ethereum and Avalanche chains. This facilitated seamless cross-chain transactions, with gas fees paid in the respective chain's token. Moreover, the protocol's governance structure emphasized transparency and decentralization, with open-source initiatives and community involvement driving the platform's development forward.

Through initiatives like Twitter Spaces sessions and trading competitions, Futureswap fostered community engagement and celebrated milestones with its users. Overall, the V4.1 update underscored Futureswap's commitment to innovation, security, and community-driven governance in the realm of decentralized leverage trading.

Futureswap Price Analysis

As of November 24 2024 Futureswap has a marketcap of $108K. This is {{percentagefromath}} from its all time high of $22.66. In terms of its tokenomics, there's a total supply of 35M with 100% currently outstanding. Keep in mind Futureswap has a fully diluted value of $108K which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.