Derivatives on Top of Openbook
Problem to Solve:
Solana needs a robust perpetual exchange like GMX (Arbitrum) or dYdX (Starnet, which is soon cosmos appchain), or Gains Network (Polygon and Arbitrum) with a CEX-like experience that brings active traders to the ecosystem. Solana’s leading protocols, like Drift's 24H Volume, is ~$2.1M, Zeta’s 24H volume is ~$571K, while GMX on arbitrum has a 24H volume of $150M, and dYdX does $1-2 Billion consistently in daily volumes.
The demise of FTX has also left a void in the market, as they were one of the largest platforms for derivatives.
Possible Solution:
Derivatives Trading platform on Solana, offering products like perpetuals, options, synthetic assets, etc.
A few features can be:
1) Use Pyth or Switchboard as the oracle.
2) Top-notch User Experience. Take Centralised Exchanges like Binance or even (late) FTX as the benchmark.
3) High leverage and competitive fees are available to attract traders.
4) Hybrid Liquidity Model (AMM & Orderbook) and Cross-Margining can be explored.
5) Mobile-friendly interface and APIs for traders.
6) A key differentiator can be to build cross-chain derivatives using wormhole on Solana, leveraging Openbook, which attracts liquidity and capital from other chains.
Existing Projects on Solana: Mango Markets, Zeta Markets, and Drift Protocol
Other chain inspirations: GMX, dYdX, Gains Network
