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YFX adopts the PvPool (PvP) trading mechanism, allowing traders and liquidity pools to trade directly. Liquidity providers can add or remove liquidity for linear, inverse, and quanto contracts to or from single-asset pools with no impermanent loss. Liquidity providers can earn transaction fees and profit from selling LP tokens at a higher price.
YFX is developed by a team of technical geeks from all over the world. The team believes in the decentralized nature of the blockchain. The project was founded in 2020 and deployed on multiple public chains.
Yes, YFX is audited by Certik.
The contract trading system is divided into "traders" and "liquidity providers." Any user can deposit funds to the fund pool and provide liquidity to the system. Fund pools take all the orders from perpetual contract trading and are the direct counterparty to traders.
For VFX V1 and V2, the QIC-AMM model is used for pricing. The index price takes the weighted average prices on major exchanges and is updated every second.
V3 mainly uses Chainlink price feeds, supplemented by the latest price on major centralized exchanges.
If the fund pool is insufficient, the position size that the user can have is determined by the assets in the fund pools. The larger the fund pool, the larger the position size that the user can have. For the protocol's safety, there is a cap to the position size the user can have for each trading pair.
The corresponding proportion of funds in the fund pool will be locked into the position margin when the trader opens a position.
TotalMakerAssets = BorrowedFund + Balance + UnPNL + Funding + Borrow Fees
Currently, the protocol can use up to 80% of the fund pool as trading margin, and the remaining 20% is used as a reserve to meet withdrawal demands from liquidity providers.
If there is insufficient liquidity, liquidity providers must wait for traders to close their positions before withdrawing funds.
The transaction fee for trading is 0.08%.
There is no fee for liquidity providers to deposit funds to fund pools; the withdrawal fee is 0.1%.
YFX V1 does not have a funding fee. It uses a maximum holding period of 30 days to ensure the system's stable operation.
Both YFX V2 and V3 have a funding fee. For more information on the funding fee, visit the subpage on fees.
If you reside in the United States, Quebec (Canada), Singapore, Cuba, Crimea, Sevastopol, Iran, Syria, North Korea, Sudan, Mainland China, or any other area where the services provided by YFX are restricted by law, you must acknowledge and agree that you shall not trade on YFX or use any services provided by YFX.
YFX has certain administrative control on exchange governance and parameter settings to ensure the exchange runs smoothly.
YFX's administrative control does not control users' funds. Users can redeem their funds from the smart contracts at any time.
In detail, YFX has administrative control over the opening and closing of all trading on the exchange, the opening and closing of all trading of a certain trading pair, the settlement of a certain trading pair, the triggering of forced liquidation, the index price setting of users' orders, etc.
YFX can change the parameter settings on funding fee rate, transaction fee distribution ratio, maintenance margin rate, trading pairs/transaction-related parameters, etc.