We’re ready to unveil something we’ve been cooking up for our LPs to evolve them just as much as we have improved the experience for traders. We’re calling these UniDex Proactive Routing Market Making Pools, or PRMM Pools for short. Current LPs for Perp DEXs lack any flexibility in routing, market making, or scalability to the protocol.

We’re ready to unveil the next benchmark standard for counterparty pools, a fusion of intent-based architecture and our trade aggregation expertise, and already live and ready to be shipped.

The Problem

Current counterparties for Perp DEXs lack flexibility, adaptability, and scalability. For protocols that don’t currently utilize tranches, they suffer from overexposure and lack of adaptability. On the other hand, those planning to adopt or already using tranches don't offer control over market-making strategies or allow for tailored risk as it's dictated by the protocol, not the LP's preference. Furthermore, none of these models come with inherent composability features, offloading the burden to external protocols.

PRMM pools take a whole new approach to liquidity for Perp DEXs, combining the best of all market making practices and strategies, housed into a singular modular aggregation protocol.

What is a Tranche anyway?

Tranches offer yield earners the ability to choose their own risk profile. For example, a senior-level tranche would be exposed to the least amount of risk while earning the least amount of yield, compared to the junior tranche exposed to the highest amount of risk with the largest possible yield gain. In DeFi, protocols like Level have introduced tranches to GMX’s GLP in order to provide liquidity providers with 3 diversified risk profiles.

Normally all GLP holders are exposed to every pair and the same liquidity weighting. This provided a way so LPs can choose between exposure to riskier assets or more neutral and passive market making. But this lacked flexibility. Even within GMXv2, the protocol lacks the ability for market makers to simulate an orderbook, and the pricing mechanism is done entirely by a set formula. While risk is isolated between each pair, the LP still can be the counterparty to a terrible trade they didn’t want to take on.

UniDex PRMM Pools & Hooks

These new pools allow private liquidity to finally be tapped into or passive LPs to limit their risk while still automating the market-making strategy to the protocol. As more aggregation protocols are launched, these new pools are also backwards compatible, allowing for other perp aggregators to tap into them while also following ERC-4626 yield-bearing vault standard, allowing composability with outside protocols like Pendle, GMD, or Beefy.

This creates an environment similar to UniswapV4 with Uniswap hooks, but instead its UniDex Perp hooks. Protocols, users, or private market makers can create pools and strategy vaults for the Aggregation SDK route into in real-time batch auctions.

Any hedger could create their own isolated tranche exposed to whatever assets they like, follow their own market-making strategy, and customize trade fee parameters to suit their own risk.

Or if you’re just a passive retail user, a protocol could create an automated strategy vault that is only exposed to the same assets as an outside aggregated protocol like GMXv1 and following their same 0 slippage higher fee model.

Or let’s say you’re a protocol looking to create automated trade strategies such as delta-neutral, Concentrated liquidity exposure, or single-directional exposure strategy vaults. One could even make a stable coin comprised of multiple tranches backed by the derivative market of just ETH/USD.

How do I create a hook?

Currently, anyone can craft their own market-making strategy with an attached price feed or Perp Hook, whether it's on-chain or off-chain, and integrate it with the UniDex Aggregation SDK. While we currently rely on a whitelisting system for routing on the UniDex & Aggregation SDK, our future roadmap includes a shift towards a permissionless system which will empower any hedger, market maker, or LP generated from the factory contract to be aggregated in the routing process.

Our new contracts are based on the same BSL license that Uniswap has also adopted to protect corrosive forks and our work. Our ERC-4626 recipient token vaults which allow for composability within protocols like Pendle are currently undergoing audits and review, however this doesn’t impact vaults and hooks from being utilized in the aggregation process.

If you would like to create a Perp hook, plug in your own private liquidity pool, or become a hedger on the platform. Reach out to us on any of our socials or email us at partnerships@unidex.exchange.

What now?

We’re onboarding the first wave of hooks, private liquidity pools, and tranches into the aggregation mix. These changes are already live and ready to be utilized, and are just waiting for deployed liquidity and an initial set of partners/firms. As we make more progress on our 2nd stage of PRMM pools which include a receipt token, we’ll update the community and eventually call for a migration to the new pool contracts.

UniDex Quick links

Discord invite link — https://discord.gg/unidex
Twitter — https://twitter.com/UniDexFinance
Website -https://www.unidex.exchange/
Swap Trading — https://app.unidex.exchange/
Leverage Aggregation Terminal — https://leverage.unidex.exchange/
Business Inquiries — marketing@unidex.finance