Futureswap aims to create a perpetuals trading experience that improves on what centralized futures exchanges offer. Very little of the ~$100 billion in daily perpetuals volume is currently being handled on-chain. Futureswap wants to be a key driver in bringing this volume on-chain. V2 of Futureswap provides features that serious traders expect, including live pricing, more performant trading, and higher capital efficiency. Core features such as AMM style liquidity providing, incentivized usage, and community governance remain mostly unchanged.
As of now Futureswap is not in all regions worldwide.
As Futureswap’s V2 Beta progresses, we are open sourcing and verifying more contracts used in the system for the community to take the reins. All contracts can be voted on by FST holders to change parameters or even to upgrade them. See the contracts section: Contracts
Futureswap is controlled 100% by a governance token called FST. This token cannot be bought or sold but can only be earned. FST has no value. FST can vote to change any part of the Futureswap protocol.
Initially Futureswap will launch with an ETH/USDC pair. Once the system is ready we will unlock the ability to launch more pairs via votes.
Futureswap will be controlled by FST holders. Users will be able to create proposals for items such as new exchanges, leverage updates, new oracles, upgrades etc. Every aspect of Futureswap is upgradable. Initially, governance will not be enabled until FST is distributed to enough users.
Users can add liquidity by going to the pools page and adding equal value of asset and stable to the selected pool. Adding liquidity is a two step process. First users will deposit to their Futureswap wallet and then liquidity can be added to the pool.
Yes, Futureswap is non-custodial. Deposited funds are stored in an ethereum contract that has been audited by Open Zeppelin. As a user, only you have access to your funds on Futureswap and that can never be changed.
Futureswap does process meta-transactions. If for any reason Futureswap nodes go down, your funds can be recovered by putting the exchange into disabled mode.
If there’s concerns about Futureswap it can be voted into disabled mode to recover funds back to users. In disabled mode, all open trades can be closed by any address and only the starting collateral will be sent back to the address that opened the position. No profit or loss will be calculated as this is a precautionary security measure. Liquidity Providers will be able to withdraw their liquidity without having to wait for trades to close to free up that liquidity. Disabled Mode cannot be reversed and a new exchange will need to be voted in.
Anyone with 100 FST can create a community governance vote to put the exchange into Disabled Mode. The rest of the community will be able to vote yes or no to this measure and the vote will be resolved within 2 days.
A node cannot manipulate your trade once you sign it. All trades have trader set price bounds that the oracle cannot violate. If there is a violation of any of the traders bounds the trade will be rejected from the contract in order to protect the trader.
Other users can put the transaction on chain similar to Gas Station Network but this will not be enabled for launch.
Withdrawing from your fs-wallet requires users to first sign the action and then our system will prompt you to send a transaction to complete your withdrawal.
The Futureswap wallet stores your balance of tokens and enables you to interact with Futureswap. Transactions on Futureswap are paid from your fs-wallet instead of metamask, which allows for a more real time experience.
Futureswap is governed by a DAO, which allows for parameters such as leverage to be voted on by the community.
FST has no value and is non-transferable because we believe that earning the token rather than buying it will create incentive alignment with long-term community goals.
FST is earned in three ways. Trading, providing liquidity, or referring a trader to use the platform. FST is given out on a weekly basis.
Each trader receives FST based on their trade volume in proportional to the total trade volume over the last week.
FST is earned from liquidity that’s provided for a full week period. You can see when a new week starts on the rewards page. Liquidity providers that are not in for a full week based on the week timer will still earn trade fees.
To earn FST as a Liquidity Provider you need to be in before the week starts and still in after the week ends. If you join after the week has started (the contract snapshot is taken) you will not earn FST as a Liquidity Provider for that week.
FST is claimed by going to the rewards page and clicking the button to mint rewards.
The release schedule is subject to change by a community vote but currently there are 108,000 FST issuable per week. To earn FST as a Liquidity Provider you need to be in before the week starts and still in after the week ends. FST is split up among network participants by participating volume:
30% liquidity providers,
FST is used to create and vote on proposals.
FST can only be earned on Futureswap and cannot be bought or transferred.
For our Beta, Futureswap will use a centralized source for signing actions except for the disable mode withdraw actions. Once Futureswap is ready we will add more nodes to our network.
We have a support channel in our discord
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The dynamic funding rate (DFR) is a mechanism of the Futureswap system that aims to keep the long and short open volumes balanced. Futureswap relies on the volume of open longs and open shorts to be relatively balanced for the majority of the time. There will be deviations where the pools are very imbalanced due to large trades or spikes in volatility but this will impact the funding rate which in turn incentivizes more volume on the less popular side.
The funding rate is displayed on an 8 hour period but is charged continuously in the form of the exchange's stable token.
Initially, we plan to limit leverage and collateral so that we can safely monitor the system as it scales. As the platform becomes more efficient through increased trade volume and liquidity, these parameters can be changed through a governance vote.
The entry price is the predicted price the user will receive for their trade. It is affected by trade size and the balance of open longs and shorts. The final execution price of your trade should be very close to the entry price, but can slightly differ based on volatility
The default trade bound is 2% on the price and can be adjusted manually. If traders need more control please see the API documentation for manually setting trade bound parameters.
The liquidation price is the price at which your trade will be available for liquidation. For longs, any value below the liquidation price and for shorts, any value above the liquidation price will be liquidatable. If your trade falls below 5% collateral 30% of the trade collateral will be sent back to you.
Close Trade: All close trades have a flat 0.1% trade fee.
Balancing Open Trade: A trade that is taking the less popular side based on volume. This means that if there are 5,000 ETH long and 4,800 ETH short opening up to a 200 ETH short would receive a lower 0.1125% trade fee because it is balancing(or arbitraging the open interest).
Imbalancing Open Trade: A trade that is taking the more popular side based on volume. This means that if there are 5,000 ETH long and 5,100 ETH short opening up to a 100 ETH long would receive a higher 0.225% trade fee because it is balancing(or arbitraging the open interest).
An estimate of the Ethereum gas costs is displayed before every action. This gas estimate is displayed and paid in stable from your fs-wallet for a node to put the transaction on-chain.
All transactions in Futureswap are meta-transactions, which means a node puts your transaction on-chain for you. Users pay these nodes gas fees in the exchange’s stable token (USDC).
From the Metamask account, you opened the trade from click on the desired trade to close and select “Close Trade” and sign the transaction.
Advance Epoch moves the contracts incentive epoch(time period) count forward so that the previous epoch's rewards can be claimed by users and a new rewards week period begins. On the rewards page, you can see how much time is left in an epoch. When the epoch is over any user can move the epoch forward by clicking the newly enabled button on the rewards page.
How long is an Epoch?
Currently(January 2021) FST holders have voted an Epoch to be 24 hours. This can change with another governance vote.