How SakePerp Works

How the on-chain SakePerp system works under the hood

  1. Market Makers provide liquidity for the SakePerp system and earn the rewards of protocol development. In the meantime, MMs will take the risk of the net position.

  2. Traders can easily take a long or short position or a buy and sell position with leverage.

  3. The liquidator will earn a certain percentage of the user’s remaining position margin as the liquidation service charge. Liquidation occurs when the trader’s position margin falls below the maintenance margin.

  4. Oracle provides the price of the underlying asset on-the-spot market. Oracle + vAMM will calculate the transaction price.

  5. The Insurance Fund is designed to provide financial protection under extreme circumstances.

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