SLP (Satoshi Liquidity Pool) tokens represent shares in asset-specific liquidity pools. Unlike general-purpose liquidity pools, Satoshi Perps’ SLPs are designed to minimize impermanent loss for liquidity providers while maintaining exposure to a base asset. Key characteristics include:
  • Asset-specific pools: Each SLP is tied to a particular asset class (e.g., SLP-BTC for Bitcoin-based assets).
  • Price determination: The value of SLP tokens is based on the worth of all tokens within the pool, factoring in the profits and losses of all currently opened positions.
  • Yield generation: SLP holders earn from trading fees, borrow fees, trader losses, and liquidations.

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Key Differentiators and Advanced Features

  • Bitcoin-Centric Design: Satoshi Perps is specifically tailored for the Bitcoin ecosystem, allowing for increased capital efficiency while maintaining collateral and earnings in BTC through SLP-BTC.
  • Flexible Collateral: Traders can use long-tailed Bitcoin-based assets as collateral for both long and short positions. This eliminates the need for stablecoins in the pools and allows traders to maintain their Bitcoin collateral exposure while trading.
  • Advanced Risk Management:
    • Dynamic liquidation thresholds based on position size and market volatility
    • Partial liquidations to allow traders to maintain portions of their positions
    • Liquidation guards to prevent cascading liquidations during extreme market events
  • Innovative Borrow Rate Mechanism: Satoshi Perps implements a borrow rate system that helps balance long and short positions while providing additional yield opportunities for SLP holders.