NFTperp is a perpetual futures DEX for NFTs. It launched in 2022 on Arbitrum now starting in the Blast network.
nftperp v2 introduces a transformative liquidity protocol called Fusion AMM that combines the strengths of automated market makers (AMMs) and on-chain decentralized limit order books (DLOBs).
Fusion AMM is designed to leverage the strengths of AMM and DLOB.
- Consistent liquidity provision: AMM acts as an independent market maker within the DLOB, ensuring consistent liquidity availability across the entire price curve.
- Increased market depth and minimized price impact: By incorporating DLOB, Fusion AMM ensures that large orders have minimal impact on price, enabling more efficient trading.
nftperp v2 introduces an insurance fund to manage risk and ensure the security of the protocol. The insurance fund acts as a backup for system debt and provides a revenue mechanism for liquidity providers (LPs) who contribute to maintaining the financial integrity of the protocol.
The insurance fund will be denominated in ETH and will be used exclusively to manage bad debt from liquidations and risks at the protocol level within the ClearingHouse. The fund operates as an ERC4626 vault, allowing for easy liquidity contributions. In return, LPs receive an appreciating ERC20 token tied to protocol profits.
