Provide GHST as Liquidity on the Derivatives DEX SynFutures

Disclaimer: I’m posting this on behalf of the SynFutures team with some slight edits by me.

Since Aavegotchi has gathered a lot of liquidity on Spot DEXes, it is high time for Aavegotchi to create and boost its Futures market. Derivatives markets make up the majority of global trading activity and allow users to leverage their investments. Adding GHST liquidity on SynFutures would allow people to take on leverage longs (or shorts) on the future of Aavegotchi. But why SynFutures?

Great investors and team backgroud
SynFutures is backed by Polychain, Pantera, Dragonfly, Framework, Standard Crypto, Woo, and more. The team’s background is a great combination of traditional finance and DeFi. SynFutures is the only project of its kind which can support the listing of any assets by anyone in a permissionless manner (in less than 30s). The project has the potential to be the No’1 Derivatives DEX.

Security
Backed by solid experience from the TradFi financial engineering and DeFi protocol safety, SynFutures has many risk management features (e.g. anti-flashloan attack, EMA smoothing method, etc.) and has gone through external code audits.

Easy to manage and start
SynFutures supports a single token model to add liquidity which means the Aavegotchi Treasury would only have to deposit GHST instead of offering two tokens with the risk of impermanent loss. We are asking for 200k worth of GHST tokens to kickstart the pool. The liquidity could be withdrawn anytime.

Growth Potential:
Trading volume and users are growing fast on SynFutures. For the past 3 months since ^the SynFutures Alpha launched, we reached 47k users of and $1bn+ in trading volume. All this happened without a native SynFutures token, which could attract even more users.

Volume analysis
Quickswap/SynFutures:
Total LPs: 150k / 40K
Total traders: 100k / 20k
Daily trading volume: $100M / $29M

SynFutures trading volume makes up ~1/3rd of QuickSwap, and the amount traders is 1/5th as big as on QuickSwap, however, the trading volume for different pairs is more concentrated. SynFutures has 108 trading pairs while QuickSwap has more than 22k pairs. For example, the daily trading volume of Matic-USDC on SynFutures closes in on around $9M, while Quickswap reaches $14M.

More data: Dune Analytics

Quick sentiment poll:

Should we add $200k liquidity on SynFutures?
  • Yes, let’s do it
  • No

0 voters

5 Likes

Message received. Also, completely supportive of leveraging the treasury into a decentralized futures market on our own future! Do you believe SynFuture would be open to exploring in-game representation as well?

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Maybe yeah, probably something we can revisit once the Grid (& the Paartner Parcels there) go live.

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synfutures is the bright future!
don’t hesitate. move fast

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SigProp is ready frens: Snapshot

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But why tho?
I understand the idea but don’t understand what’s the benefit.

If someone can shed some light :pray:

5 Likes

Bingo, bango, there she is. Gimme a chance to show even more bullish support for this beast. There is a very limited leverage market for $Ghst right now. Trust me, I’ve tapped out WowSwap. We need more depth there for such a good call.

@Moon, when would this liquidity be deployed? As in, before the 3rd land auction…???

2 Likes

to put it simply, by adding the liquidity, will attract more ppl to swap the other coins into $GHST. win-win game

I agree with Ceza. I voted No. Explain why please. Can’t just vote as if wen moon.

2 Likes

Shortly after the CoreProp passes I’d imagine

Not a fan of this proposal. Synthetic / derivative markets dont do much for spot and may actually present downward pressure. It may fragment trading volumes from spot markets to derivs, which is pretty bad when the coin is 1/3 stable and growing at a very healthy rate with holders increasing.

I think this proposal would be ok when more CEXs have launched GHST markets, but too early to allow an instrument to hedge with.

4 Likes

will the dao get some trading fee on the 200k GHST ? how much will it be ?

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Yes, 0.25% of all trading fees are redistributed to LPs

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Geolocked… all risk no reward. misleading data.

400,000 x 0.25%= 1000

“Anything we can do to create a virtuous cycle of economic growth via sustainable rewards will do wonders for this game!” -Coderdan

2 Likes

not sure what you meant by geolocked can you elaborate ?

Didn’t we learn anything from DinoSwap? I don’t think the best use of our funds is supplying liquidity into some new unproven project. I read this proposal a couple times and I can’t see any substantial benefit to the Aavegotchi ecosystem from doing this, certainly not enough to justify locking away $200000k of our treasury into it. I think there are a lot of great things we could use this money for to help the ecosystem grow, but this is not one of them. The GoodGhosting proposal is much better–less investment, with much higher chance of bringing new people to the project.

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Who would be managing the LP position?

Edit: I see it in description - DAO treasury.

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A key difference with Dinoswap was that the funds were actually being spent over time. With this proposal, the DAO’s 200K will only be providing liquidity, and can be removed at any time (assuming the project doesn’t get rugged).

2 Likes

so much this.

This will be a destabilizing force.

How is this LP position going? What trading fees have been earned so far? Should the DAO withdraw this LP position?

I can’t see any trading volume relating to GHST on their analytics dashboard - SynFutures V1

I also can’t find a way to open a GHST position using their Dapp. Anyone have the txid of the DAO opening the LP position?