RFX Documentation
  • Overview
  • Liquidity Providers
    • Liquidity Pools
    • RFX Liquidity Vaults
      • RFX Shared Liquidity Vault
    • LP Risk Management
  • Traders
    • Swaps
    • Liquidations
    • Price Impact
  • Fees
  • One-Click Trading
  • Permissionless Markets
  • Oracle System
  • Security
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Permissionless Markets

RFX allows market participants to create their own trading pairs with whitelisted assets and list them in a permissionless manner.

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Last updated 4 months ago

V1 of RFX allows for permissionless pair creation - where traders can create new markets, both USD denominated and ratio markets (i.e. pair trades) with RFXs risk engine abstracting away market parameter configurations (max leverage, fees, OI caps, etc.).

The first iteration of permissionless markets has been designed to allow market participants to create new pairs without impacting the stability of existing markets and isolating any potential risk from extremely volatile trading pairs. Over time, the number of whitelisted assets will continue to increase, unlocking more opportunities for traders on RFX.

V1 of the Permissionless Markets module can facilitate the creation of 167 possible pairs - 54 USDC pairs, and 113 potential pair trades.

Creating a New Trading Pair

New trading pairs can be created in 5 simple steps by navigating to the page and clicking the "Create New" button on the top right corner of the page.

Thereafter, follow the instructions on the Create Pair pop-up that appears.

Liquidity

Liquidity for new pairs can be seeded one of 2 ways:

  • if a new pair is within the SLVs prescribed risk threshold and the SLV has sufficient available liquidity, then it seeds the pool for the new trading pair with $50,000 in liquidity to execute the requested trade;

  • liquidity in all other scenarios needs to be deposited by the pair creator which then enables other market participants to trade new pairs. Any new pairs proposed to be created that don’t meet risk criteria for the SLV need to be funded with a minimum of $50,000 in liquidity.

Pair Trading / Ratio Markets

RFX has special markets called Ratio markets which allows traders to execute pair trades and speculate on Token X/ Token Y price where X and Y are both whitelisted tokens on the platform. Users can now trade on assets like ETH/SOL, DOGE/SHIB etc. This uses a slightly modified oracle flow:

  • The keepers first identify that this is a X/Y market by looking at the token config

  • Then signed prices for both X and Y token are fetched along with the long and short token prices and sent to the oracle contract

  • Oracle contract takes X and Y price and calculates X/Y price using the formula:

    maxPrice(X/Y) = maxPrice(X)/minPrice(Y)
minPrice(X/Y) = minPrice(X)/maxPrice(Y)

  • These prices are then used like any other token for further calculations

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