DTX has two parties: traders and liquidity providers.
DTX uses NFTs as accounts. They follow ERC-1155 to link data on-chain with fungible and non-fungible tokens in DTX protocol, making it composable for potential interoperability with other protocols.
Key features:
- Trade strategy management: When opening positions, traders link them to one of the NFT accounts. In this way, they avoid the cost and complexity associated with using multiple wallets.
- Protocol Composability: NFT sub-accounts are ERC-1155 compliant, which will allow traders to interoperate with other protocols to release more liquidity.
- Easy migration: Transfer everything with a simple transfer.
Liquidity vaults act as a counterparty to trades executed on DTX:
When traders win (positive PnL), their winnings come from the vault.
When traders lose (negative PnL), their losses are sent to the vault.
What is ERC-1155? ERC-1155 is a multi-token standard on the Ethereum blockchain that allows for the creation of both fungible and non-fungible tokens.
DTX follows to a synthetic trading architecture, allowing traders to trade crypto assets in USDB and WETH.
Each liquidity vault is a single-asset vault that implements ERC-4626, which greatly improves capital efficiency and expands its capabilities.
ERC-4626 explained: ERC-4626 is a standard for optimizing and unifying the technical parameters of revenue vaults. It provides a standard API for tokenized revenue vaults that represent shares of a single underlying ERC-20 token. ERC-4626 also describes an optional extension for tokenized vaults using ERC-20 that offers basic functionality for depositing, token withdrawal, and balance reading.
DTX offers two sets of vaults for liquidity providers supporting different markets, allowing them to choose different vaults to provide liquidity depending on their risk and reward preferences.
Standard vaults are exclusively for blue chip markets such as BTC/USD and ETH/USD. DTX currently offers two standard vaults that hold WETH and USDB. This approach is designed to maximize yield, liquidity and asset mix for our community.
Alpha Vaults are specifically designed to support trading of highly volatile cryptocurrency assets. Only USDB can be deposited in Alpha Vault by liquidity providers (LPs). Alpha Vaults are categorized into different risk levels such as Level A, Level B and so on.
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