Overview

LogX perp dex with deep liquidity for a seamless and efficient leveraged trading experience.

How does it work?

In traditional finance, traders trade against liquidity provided by external entities like market makers, which creates a major dependence on these entities. Trading against a liquidity pool eliminates it. Anybody willing to participate in the market can provide liquidity to the pool and become a liquidity provider, or LP.

LogX Liquidity Pool is a stable asset pool constituting USDC and USDT. Which means traders can trade using USDC or USDT as collateral and PnL of the traders are also settled in the same collateral token. Liquidity providers can provide USDC/USDT in return for the LLP token which is the liquidity token for LogX.

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To understand what trading against a liquidity pool would be like, let's go through an example:

Let's assume that initially a liquidity pool has a deposit of assets worth $1000 USD.
A trader wants to open a position with $10 as collateral and 2x leverage, making his position size 20 USD.

Scenario 1: The trade is closed with a 50% profit for the trader.
- The trader ends with a sum of $20 USD, $10 (initial collateral), and $10 (as profit, deposited from the pool).
- The pool’s final balance would be $990.

Scenario 2: The trade is closed with a 50% loss for the trader.
- The trader ends up with $0 in this case, and $10 USD are transferred to the pool.
- The pool’s final balance would be $1010 in this case.

* Note that we are not considering the position getting liquidated for the sake of simplicity in this example.

Price Oracle

LogX uses a dark oracle that aggregates prices from various centralised and decentralised dexes to agree upon a common median value of price. This aggregated price value is compared against price from the Pyth Oracle network and written to chain. This comparison is done on chain and the aggregation from multiple sources makes sure that a common market price for token pair is taken into consideration.

Pyth is a decentralized oracle network which provides real-time spot prices for token pairs on LogX. Charts on logX are also powered by Pyth oracle network.

Liquidity Utilisation

LogX liquidity pool is composed of stable tokens (USDC and USDT). Every trade is placed against a collateral token of either of these two stable tokens. This eliminates the issue of maintaining high liquidity for each token pair separately, which one would have to do in an order book model for a DEX.

Traders can trade against the liquidity pool regardless of the index token; the same liquidity will be available for each index token listed on LogX. This means that as long as the platform has enough stable token liquidity, traders can use that liquidity to open leveraged positions on any index token.

Risks and limitations Checks

Max profit of each trade is currently capped at 800%. This is done to minimise risks of LPs.
Protocol minimises the Longs and Shorts imbalance to per index token as a risk measure for LPs.
Maximum open interest or cap on max long and short sizes that can be opened on each index token.

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Last updated 10 months ago

Let's assume that initially a liquidity pool has a deposit of assets worth $1000 USD. A trader wants to open a position with $10 as collateral and 2x leverage, making his position size 20 USD. Scenario 1: The trade is closed with a 50% profit for the trader. - The trader ends with a sum of $20 USD, $10 (initial collateral), and $10 (as profit, deposited from the pool). - The pool’s final balance would be $990. Scenario 2: The trade is closed with a 50% loss for the trader. - The trader ends up with $0 in this case, and $10 USD are transferred to the pool. - The pool’s final balance would be $1010 in this case. * Note that we are not considering the position getting liquidated for the sake of simplicity in this example.