YFX V3

YFX is a decentralized perpetual exchange with up to 100x leverage, high liquidity, low fees, and no slippage.

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.

The V1 version was developed in June 2020, and the V2 version was developed in January 2022.

YFX V3 is a new upgraded version of YFX V2. This upgrade mainly adds aggregated fund pools, ChainLink price feeds, a new Earn model, a new hedge position mode, funding fees, borrowing fees, liquidity provider tokens YLPs, a more incentivized referral program, and a new UI design that makes the protocol more decentralized and easier to use.

Aggregated fund pool YLP (YFX Liquidity Provider)

YFX V3 adopts the PvP (PvPool) trading mechanism, which allows users and fund pools to trade directly. In V1 and V2, each trading pair corresponds to a fund pool, while in V3, YFX utilizes multiple single-asset fund pools based on the risk of the underlying assets. Mainstream trading pairs such as ETH/USD and BTC/USD share one USDC fund pool, ARB/USD, UNI/USD, DOGE/USD, and other trading pairs share another USDC (USDC 2) fund pool. Adopting multiple single-asset fund pools effectively reduces staking risks from a major market shift of another cryptocurrency.

Liquidity providers (LP) can choose to stake in a fund pool with the optimized risk level according to their own risk preferences.

In the V1 and V2 versions, the price is determined by the weighted average price of the Top N centralized exchanges. In V3, the price is mainly determined by the ChainLink price feeds. The weighted average price of the centralized exchanges is used for rapid price corrections.

New Earn Reward Mechanisms

In V3, YFX token holders can stake to earn 30% of the platform's transaction fees. YLP token holders can stake to earn 60% of the platform's transaction fees and profit from selling LP tokens at a higher price. The remaining 10% of the platform's transaction fees are used to repurchase and burn TFX tokens. In addition, YFX introduces new “trade to earn” and “invite to earn” reward mechanisms that further incentivize users to trade and invite others to trade on YFX.

Switch Between One-way Mode and Hedge Mode

In V1, traders can simultaneously have long and short positions for any trading pair. In V2, traders can only have a long or a short position for any trading pair. In V3, traders can switch between one-way and hedge modes based on their preferences.

Funding Fees

YFX implements the funding fee mechanism to balance the aggregated long and short positions. When the funding fee is positive, longs pay shorts. When the funding fee is negative, shorts pay longs.

Borrowing Fees

When a trader opens a position on YFX, they borrow some funds from an LP fund pool. Therefore, traders need to pay borrowing fees to the fund pool.

In YFX V3, the maximum borrowing fee a trader can pay is 0.008%/hour.

A comparison between V1, V2, and V3

VersionV1V2V3

Development Time

June 2020

January 2022

January 2023

Position Mode

Support only Hedge Mode

Support only One-way Mode

Support both Hedge Mode and One-way Mode

Funding Fees

No

Yes

Yes

Borrowing Fees

No

No

Yes

Trigger Orders

No

Yes

Yes

Stop-loss & Take-profit Orders

No

Yes

Yes

Deposit & Withdrawal

Yes

Yes

No

Liquidation Execution

YFX Liquidation Bot

YFX Liquidation Bot

YFX Liquidation Bot and YFX community (when there are too many liquidations to process)

Remaining Margin after Liquidation

Add to YFX Insurance Fund

Add to YFX Insurance Fund

Return to traders

Fund Pool Model

One pool funds one market

One pool funds one market

One pool funds multiple markets

Referral

The address is recorded on-chain. One address can only have one invitation code

The address is recorded on-chain. One address can only have one invitation code

Invitation codes are recorded on-chain. One address can have multiple invitation codes

Pricing Mechanism

Use the weighted average last price on major centralized exchanges

Use the weighted average last price on major centralized exchanges

Mainly uses ChainLink price feeds, supplemented by the weighted average last price on major centralized exchanges

Add Margin

Yes

Yes

Yes

Remove Margin

No

No

Yes

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