What are the features of Rage Trade's ETH perp?
- vAMM powered by UNI v3
- 5x Leverage and Margin Benefits
- Deep Liquidity and Accurate Funding Rates
How does Rage's vAMM work?
Rage Trade is powered by UNI v3 using a vAMM (Virtual Automated Market Maker) design. The UNI v3 vAMM pool holds virtual tokens (for ex: vETH-vUSDC) that are synthetic representations of underlying tokens in the spot market (i.e. ETH-USDC). Traders and LPs (Liquidity Providers) use virtual tokens to place orders on the vAMM.
What are the benefits of using Rage Trade?
Rage Trade offers several benefits over other onchain perps:
- Traders can withdraw and trade with unrealized PnL
- Builders can build structured products and stablecoins
- LPs can recycle their liquidity into Rage's ETH perp
How does Rage Trade build liquidity and accurate funding rates?
Rage Trade uses Omnichain Liquidity and the 80-20 Vaults to build deep liquidity into our ETH perp. Additionally we have designed a funding rate mechanism called forward guidance, to ensure that our funding rates match CEX rates. When CEX funding rates & Rage funding rates diverge, forward guidance allows the governance module to toggle between 3 methods of funding rate calculation to keep the rates close to fair value.
The funding rate mechanism is designed for stablecoins such as UXD, Lemma, Frax. This enables stablecoin issuers to open delta neutral perp positions (1x short positions collateralized by ETH) while earning CEX basis yield.