Equation: Innovative Perptual Futures platform

Equation, as an emerging Perptual Futures trading platform, has developed rapidly since its launch. In just one month, its Total Value Locked (TVL) has tripled to 16 million USD, and the trading volume has reached as high as 500 million USD. This success is reflected not only in the data but also in its excellent performance in product design, token economics, and user experience.

Perptual Futures Trading Market Opportunities

In the field of cryptocurrency trading, decentralized exchanges (DEX) have already captured a considerable market share in spot trading. However, in the area of Perptual Futures trading, the on-chain trading volume still shows a significant gap compared to centralized exchanges. Data indicates that the on-chain contract trading volume accounts for only about 1.5% of that of centralized exchanges, which means that on-chain Perptual Futures trading platforms still have vast room for development.

The Innovative Mechanism of Equation

Trading Mechanism

Equation uses a trading pool as the counterparty for traders. When users perform trading operations, the liquidity pool (LP) will open positions in the same scale and price, but in the opposite direction.

Pricing Method

Equation introduces an innovative BRMM (Balance Rate Market Making) pricing mechanism. This mechanism determines the price premium rate (PR) of Perptual Futures based on the balance rate (BR) of the liquidity pool. The calculation method for BR is the value of the short positions held by LP divided by the total liquidity of LP.

Funding Rate

In the BRMM model, the direction of the funding rate payment depends on the LP's position. When the LP holds a short position, the long position holder needs to compensate the short position holder; and vice versa.

User-Friendly Design

Equation offers lower maintenance margins and higher leverage in trading, which is extremely attractive for cryptocurrency traders seeking high risk and high returns. Compared to other platforms, Equation's maintenance margin is as low as 0.25%, with a maximum leverage of up to 200 times.

To protect liquidity providers (LPs), Equation has designed a Risk Buffer Fund (RBF). When LPs incur losses as temporary trading counterparts to users, the RBF will first absorb these temporary losses until the funds are exhausted. This significantly reduces the risk of temporary losses faced by LPs.

Innovative Token Economics

The token design of Equation includes functional tokens (FT) and non-fungible tokens (NFT), incentivizing user participation through a 100% fair distribution model.

EQU Token

EQU, as the native token of the platform, is fully generated through position mining, liquidity mining, and referral mining. The mined tokens will be locked for 90 days, and early withdrawal will incur penalties. Additionally, Equation adopts the ve (vote-escrowed) model to empower the token, allowing users who lock EQU-ETH pool LP to obtain veEQU, and holders can share 25% of the protocol's trading fees.

EFC Non-fungible Token

EFC is divided into different levels, including Member, Connector, and Architect, each type has specific rights and functions:

• Members: A total of 10,000, distributed to individuals actively promoting Equation.
• Connector: A total of 100, distributed to the Equation core promotion team.
• Architect: A total of 100, allocated to the core R&D team of Equation.

Through this multi-layered tokenomics design, Equation has successfully incentivized participants in different roles, driving rapid development and user growth of the platform.