In this edition, we’re filling you in on Polynomial, a perpetuals protocol offering up to 25x leverage.
Polynomial is built on Synthetix liquidity, and utilizes OP rewards to incentivize users. By using existing DeFi infrastructure and initiatives, Polynomial has been able to see growth without the use of a native token…
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Crypto Market Update:
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News:
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Polynomial Protocol Overview
Polynomial is a DeFi Derivatives Powerhouse, offering up to 25x leverage.
Polynomial launched its decentralized perpetual swaps exchange with 25x leverage using Synthetix as its liquidity source.
Since then, Polynomial has become one of the top Synthetix perpetual swaps trading front-ends.
The team places an emphasis on UX and having a diverse range of assets to trade, with over 60 markets available on the market.
User experience is a key factor for the success of trading protocols, while challenges of on-chain trading include latency and gas fees when compared to CEXs.
The team’s primary focus has been on improving the user experience.
They aim to make the experience as seamless as centralized exchanges, if not better, and have been continuously shipping new features to achieve this.
While on-chain trading can have challenges like latency and gas fees, competitive fee structures can offset these challenges.
Polynomial includes a funding velocity mechanism, which affects trading dynamics.
New features like multiple authority, allow users to trade from multiple devices.
The strategies feature simplifies the trading process for pro users.
Perpetual Swaps & CEXs
Perpetual swaps are considered a great financial instrument; one that many people want to use.
A key advantage of perpetual swaps is that they can be made for any liquid market.
For crypto, perpetual swaps are a product-market fit, with people trading trillions at the peak of the world market.
Polynomial Co-Founder Gautham has expressed the desire to replicate the success of perpetual swaps in a decentralized setting.
Gautham shares that Polynomial decided to focus on perpetual swaps due to its potential for growth as well as challenges with developing options in DeFi.
Polynomial's Trading Competitions and User Engagement
Polynomial hosts trading competitions which are designed to target larger traders.
These competitions are part of their strategy to engage and retain active traders on their platform.
There is an XP system in Polynomial, where traders gain experience points for trading.
The more a user trades, the more XP they gain, which can lead to various benefits.
Traders who make profits can earn more XP, incentivizing profitable trading.
Reaching certain XP levels can give traders a boost in their rewards.
These competitions are structured to ensure fairness, with different tiers based on trading volume.
Past marketing experiments include giving out NFTs to traders and other trading operations.
Insights from these experiments lead to the creation of the "trading season" – a two-month-long program where traders can level up and collect rewards.
Discussion on Token Incentives and Growth
Polynomial currently does not have a native token, and relies on $OP rewards to be used as incentives.
Polynomial is still currently growing with $OP rewards, essentially borrowing someone else's incentives.
The project is still in the building phase, with more features and improvements planned to be added to the platform.
Competitive Advantage
Gautham says that Polynomial differentiates from competitors like dYdX by using an AMM-based system instead of an order book.
This allows for more efficient trades regardless of size.
Gautham emphasizes that the team has a focus on offering more assets and have the lowest fees among on-chain Perpetuals.
They’ve been rapidly iterating and releasing features to stay ahead.
Future Plans
Gautham announced an upcoming upgrade to the Polynomial system with Synthetix v3.
This upgrade will introduce several new features and improvements to the platform to make it more user-friendly.
He also emphasizes the importance of community engagement and feedback in shaping the platform's future.
The team aims to integrate as many features as possible to enhance the user experience, including quicker trading options.
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