🚀Future R+D - MVP and Beyond
Last updated
Last updated
TurboDEX maintains a strong commitment to user-driven development and continuous evolution. While our roadmap remains flexible to accommodate user needs and preferences, several compelling product features have garnered interest and consideration for exploration and development. These include:
TurboDEX is exploring the possibility of allowing yield-generating staked assets to serve as collateral for borrowing funds, which can then be used to purchase and stake additional assets. This process, often referred to as "looping," results in a total return that depends on how many times this cycle is repeated using the original equity.
TurboDEX has the potential to make this a standard feature by incorporating the capability to exchange assets against each other, provided the asset is eligible collateral within the money market. This would establish looping as the default mechanism, streamlining the user interface and offering default leverage for users. For example, the widely favored ETH/StETH trade, cherished by numerous market participants, can have its arbitrage condition formulated as follows:
The reduced trading friction means arbitrageurs can efficiently and cheaply leverage this trade when the condition above holds and they remain within risk limits.
Another important variable is the collateralization ratio required to borrow funds. Crypto lending tends to require overcollateralization, which means the value of collateral exceeds the value of borrowed assets. When traders collateralize staked assets to borrow more assets, they will borrow a smaller amount after each successive round of collateralizing and borrowing. The total amount of staked assets after many repetitions is a geometric series with a constant ratio derived from the collateralization ratio and gas fees. A yield multiplier may be applied to staking yields to find the maximum effective yield of a looped staking strategy. Assuming no gas fees:
For example, if borrowing ETH requires 150% collateral, then gasless looping can create a yield up to 1.5 / (1.5 - 1) = 3 times the staking yield. Default looping could frictionlessly apply these yield multipliers to staking yields.
In truth, a rational expectation would be that reducing friction means efficient arbitrage causes ETH borrow rates to converge on staking yields minus some liquidity premium as defined by the free market. Again, all market participants benefit from greater efficiency, higher returns, and more ways to express risk preferences.
Creating a basket of coins or tokens that can be traded like any other listed token represents an innovative solution to address the scarcity of high-quality index products in the cryptocurrency space. The success of projects like GMX's GLP and Curve's Tricrypto product has demonstrated a clear demand for diversified exposure that indices offer. Additionally, when combined with passive liquidity provision, these index-based products can provide an intriguing opportunity to generate yield on a portfolio of assets. This approach not only offers investors a convenient way to access diversified exposure in the crypto market but also presents an avenue for earning potential returns through yield generation.
TurboDEX plans to serve as a platform where emerging decentralized applications (dApps) can list their tokens for trading via an Initial Coin Offering (ICO). This approach enables up-and-coming protocols to distribute their tokens and raise capital in a decentralized manner. By launching on an integrated exchange like TurboDEX, these projects can swiftly establish a limit order book for trading, facilitating efficient price discovery and active trading from the outset. This streamlined process offers a decentralized alternative for token launches and contributes to the broader growth of the crypto ecosystem.
Perpetual contracts (perps) can be effectively designed to closely track any volatile index, provided there is sufficient trading activity on both sides of the market. This opens up intriguing avenues for research and innovation, such as:
Floor Perpetuals on NFTs: Exploring the creation of perpetual contracts linked to Non-Fungible Tokens (NFTs) could introduce an exciting dimension to the NFT market. These contracts could potentially allow traders to speculate on the performance of specific NFT collections or individual NFT assets.
Perpetuals Linked to Real-World Assets (e.g., Forex): Designing perpetual contracts tied to real-world assets like foreign exchange (Forex) could bridge the gap between traditional financial markets and the cryptocurrency ecosystem. Traders could use these contracts to gain exposure to Forex markets and speculate on currency price movements within the crypto trading environment.
These capabilities enable efficient event-based betting. By incorporating additional oracle data feeds, TurboDEX can enhance the fairness, accuracy, and decentralized settlement of bets on various binary outcome events. This expansion of oracle data sources ensures a more robust and reliable betting ecosystem within the platform.
