Odyssey introduces the Hook Chain, a specialized Arbitrum Orbit Chain, which serves as the backbone of its trading infrastructure. This innovative platform enhances the trading experience by providing a robust and efficient environment tailored to the needs of traders.
Enhancing Transaction Efficiency with Session Signatures
To streamline the trading process, Odyssey utilizes session signatures. These signatures authorize transactions on behalf of traders, requiring renewal every seven days. This system ensures transactions are confirmed instantly, eliminating the need for continuous wallet signatures for each trade.
Advantages of an Off-Chain Orderbook
Odyssey employs an off-chain orderbook, which lists all active buy and sell orders within the market. This setup not only speeds up transactions but also reduces costs and increases overall trading efficiency, providing a seamless trading experience.
Market Neutral Liquidity Pools
Odyssey offers innovative market neutral liquidity pools. These pools allow participants to engage in market-making activities without committing to a specific directional position, such as long or short. By placing limit orders on perpetual futures within Odyssey, these pools provide liquidity to designated markets, enabling liquidity providers (LPs) to benefit from market volumes and volatility, either in specific collections or across the market.
Understanding Your Accounts on Odyssey
The Primary Account is your central hub on Odyssey. It is the initial repository for funds deposited onto the Hook Chain. To engage in trading, funds must be transferred from the Primary Account to a Margin Account designated for a specific market.
Margin Accounts and Trading
Margin Accounts on Odyssey are tailored for individual markets, maintaining isolated balances and positions. These accounts can hold positions in only one market at a time, ensuring focused and strategic trading.
Key Derivative Metrics
- Equity: Represents the combined value of your open positions along with any collateral.
- Margin Usage: Indicates the utilized percentage of the maximum allowable position size. Exceeding 100% margin usage may trigger account liquidation.
- Index and Mark Prices: The Index Price reflects the asset's current value based on external spot markets, while the Mark Price, specific to Odyssey, shows the trading price and is kept within a 10% range of the Index Price.
- Liquidation Price: This is the critical price point at which all positions in a margin account may be liquidated. Increasing collateral in the trading market can mitigate this risk.
- Spread, Top Bid, and Top Ask: These elements measure market liquidity and price levels, with the Spread indicating the price difference between the highest buy and lowest sell offers.
Order Types for Strategic Trading
- Market Orders: These allow immediate purchase or sale at the best available price, suitable for quick entries or exits in the market.
- Limit Orders: Set a specific price for transactions, executing only when the market reaches the predefined price, providing control over trading prices.
Perpetual Futures and Leverage
Perpetual futures, or Perps, are derivatives that mimic the price movements of assets indefinitely without expiration. They allow speculation on price movements without direct asset ownership. The funding rate mechanism in Perps adjusts the cost of holding positions, encouraging price alignment with the broader market index. Positive or negative funding rates incentivize traders to balance the market by adjusting their positions. Leveraging, or trading with borrowed funds, amplifies both potential returns and risks, making it crucial to manage positions carefully to avoid rapid liquidation.
Odyssey's trading platform is designed with advanced features like the Hook Chain, session signatures, and off-chain orderbooks, all tailored to enhance the trading experience. Whether engaging in spot trading or exploring the dynamics of perpetual futures, Odyssey provides the tools and environment for effective market participation.
