Basis Trading on MCDEX

Funding Payment

Strategy

  1. Buy some amount of spot coin in the other markets
  2. Sell (short) the same amount of perpetual on the MCDEX
  1. Sell some spot + unwind the same amount of short perpetual on MCDEX
  2. Add more stable coin margin to the short position

Profit Analysis

  • α is the percent of the principal swapped for the spot coins
  • γ is the average annualized funding rate during the strategy
  • φ is the sum of spot trading fee and perpetual trading fee

Inverse Perpetual

  • Buy the spot coins with all the principal;
  • Use the spot coins as collateral to short the perpetual contract at 1x leverage;
  • No re-margin is needed;

More Profit: Trading Mining Reward

DeFi Protocol

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Building MCDEX V3 (Decentralized Perpetual) | Trade #PerpetualContracts - #Permissionless #1000x Uni’s capital efficiency #Anyone can create any market

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MCDEX

MCDEX

Building MCDEX V3 (Decentralized Perpetual) | Trade #PerpetualContracts - #Permissionless #1000x Uni’s capital efficiency #Anyone can create any market

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