Hi all!
In this digest we will tell you about the work done during the last month, analyze the trading statistics on the Tsunami 2.0 protocol, and share our plans for the near future. It will be interesting. Enjoy reading!
The tradition of digests continues, and we are happy to continue to share the most interesting facts about Tsunami Exchange with our users. Give us a "Like" if you read our digests, we will be very pleased with you. 🙂
February was truly revolutionary for Tsunami. Having managed to test the second version we successfully launched it to the masses. The birthday of Tsunami Exchange is now officially announced - February 7, 2023.
The launch of the updated version of the protocol included a lot of new features, and we were excited to see how users would react to the changes. So, let's begin.
Liquidity
Perhaps the first thing we can be really proud of is the launch of liquidity provision. Liquidity helps the protocol effectively distribute funds between traders and liquidity providers, making the Tsunami economics healthier and more balanced.
In the first month of liquidity provision, LPs provided more than 900,000 XTN to the protocol. By helping the ecosystem turn in the direction of XTN → $1, as well as helping users take advantage of the additional risk hedging from losses in the XTN price, we at Tsunami thank the providers for their trust and the traders for using our platform!
During February, liquidity providers felt in traders' shoes, experiencing impermanent losses. However, thanks to volatile market conditions and additional rewards in TSN tokens, the maximum APR of liquidity provision was 100% (45.6% excluding rewards in TSN), and continues to delight us with high values. Similar products from other blockchains boast APR values in the range of 18-22%.
Impermanent losses helped earn 2.5% of all liquidity in the vault to traders, but LPs are currently at a profit of nearly 4% (Figure 1).
*Recall that rate shows the ratio between the amount of liquidity and the amount of funds paid out to traders.
Trading
What we are all here for, trading, is the second reason to be proud of Tsunami. Let's take a look at the numbers and evaluate the results.
In just 3 weeks of trading, traders closed positions amounting to 17.3 million XTN. We consider it a great start, and by no means plan to stop.
The total realized PnL earned by traders was 33.4k XTN (Figure 2).
Open interest also showed organic growth to 400,000 XTN (Figure 3). USDT/XTN accounted for 66.5% of the open interest, the Waves/XTN market took second place (25%), and BTC/XTN took third place (6.25%).
It is noteworthy that short positions dominate by the amount of open interest, i.e. longers have earned a greater amount of funding.
The total number of closed positions for 3 weeks was 1590, and the number of active traders is approaching 130.
How much or little do you think it is? When thinking about the numbers, keep in mind that Tsunami is a pioneer in the world of perpetual futures in the Waves ecosystem.
TSN token
Statistically, changes in the product are reflected in the price of its token. So, since the launch of Tsunami 2.0, TSN price has changed from $1 to $1.3, which shows the confidence of users and organically growing demand (Fig. 4).
The average APR of TSN staking (and farming) has been about 10%. Undoubtedly, the APR for stakers is lower than the APR for liquidity providers, and we intend to attract more traders. However, it is fair to consider that staking funds do not participate in trading and do not bear the risks of impermanent losses.
New features
Developing the new protocol, first of all, we strive to provide users with the most modern methods for trading, user-friendly interface and diversity of trading markets.
Thus, the development team added a few major innovations:
Symmetrical Funding. Due to the change in the funding model, the receiving side earns funding in proportion to how much the giving side pays out, and the excess fund balance is sent to liquidity providers.
Adding of USD-X. USD-X-based futures imply that the XTN price is always $1. Trading to USD-X will be the same as trading to the regular dollar, but the position collateral and PnL remain in XTN. And, since the index token rate no longer affects the profit, the opening and closing fees for USD-X pairs have been returned to 0.12%.
New Markets. Thanks to the launch of futures to USD-X, the protocol has unlimited possibilities to add new trading pairs. We have already added BTC, ETH, Waves, DOT, LTC and BNB markets, and we would love to read what other pairs would help diversify your portfolios with Tsunami.
[Spoilers] upcoming plans
The voice of the community is the most important criterion for evaluating our work, so we always listen to what you miss or what you would like to change. Upcoming plans of the team include improving the user interface, adding new pairs, improving the speed of the trading application.
In addition, the developers are working on support of USDT, to be fully prepared when it arrives.
Without revealing all the cards, which you will definitely find out later, let's say that our team is expanding, the experience is growing, and the desire to build the best perpetual futures trading platform is growing exponentially.
Thank you for reading!
Your Tsunami Team 🌊