Tradable’s Perps model is based on Liquidity from two participants, Stakers and Market Makers.
Stakers are the primary source of Liquidity and suffer minimal to no risk. Their Liquidity is solely used as collateral for leverage trading and market making. In return for liquidity provision, they gain:
- A 14% Annualized Borrow fee once the vault Liquidity is utilized.
- Dynamic fee boosts when >90% of the vault is utilized.
- 10% of weekly Market Making default fees.
When all participants using Tradable perform their functions, the staking vault would generate more yield at scale than Tradfi yields. If one party defaults, Stakers still get reasonable yields from default fees.
Tradable draws Liquidity from multiple chains and aggregates Liquidity from numerous platforms by allowing stakers to deposit supported assets from any of the supported chains.