RUJI Perps

RUJI Perps is a decentralized, fully collateralized perpetual futures trading platform (Perp DEX) that allows users to trade tokens with up to 50x leverage, offering a secure and innovative trading experience. Unlike traditional perpetual futures platforms, RUJI Perps eliminates insolvency risk by ensuring all positions are fully funded, which guarantees the safety of traders' profits (PnL). With unique features such as locked liquidity, crypto-denominated pairs and cross margin, RUJI Perps is designed to overcome common challenges in the perpetual futures trading space, including liquidity imbalances and market manipulation.

Key Features

• Locked Liquidity: RUJI Perps introduces an innovative system of locked liquidity, where liquidity providers (LPs) deposit assets that are locked against traders' positions. These locked assets represent the maximum potential profits traders can achieve, ensuring there is always liquidity to pay for trader’s gains. This system prevents the risk of illiquidity even during extreme market conditions, ensuring that the platform can cover profits for all traders. Liquidity providers are compensated for the risks they take by receiving trading and borrow fees from traders.

• Crypto-Denominated Pairs & Infinite Max Gains: For crypto-denominated pairs, RUJI Perps allows traders to open long positions with no cap on profits or fear of protocol solvency. As the base asset (e.g. BTC) increases in value, traders can benefit from infinite max gains in quote assets (e.g. USD). This offers a unique opportunity for traders to speculate on rising crypto prices without the limitations of stablecoin-denominated pairs. Trader collateral is denominated in the base asset (e.g. BTC), and gains are paid out for both long and short positions in the base asset. In short, when you win on RUJI Perps in a crypto-denominated market, you earn more of that crypto. This is a unique way to stack more of your favorite assets.

• Trade directly from your wallet: Traders can start trading using the collateral in their wallet. Deposits are only required when opening a new position and are returned to traders' wallets when the position is closed, along with any gains or losses, once the position is closed. This ensures a smooth and efficient trading experience.

• No Mark Price Manipulation: Unlike traditional platforms that rely on an internal mark price, RUJI Perps uses oracle based spot market prices for entry and PnL calculations. This increases the difficulty of price manipulation attacks, especially in low-volume environments, providing a more stable and transparent trading experience.

• Low-cost leverage and Dynamic Fee Structures: Traders can use leverage with low fees, allowing them to maximize positions with minimal capital. With RUJI Perps, dynamic fees adjust based on market conditions, ensuring fair and competitive costs. Take profit triggers closer to your opening position result in lower fees for traders due to greater capital efficiency.

Benefits

• Insolvency Protection: RUJI Perps eliminates insolvency risks by ensuring that all positions are fully backed by locked liquidity. This is particularly important during volatile market conditions, where traditional platforms struggle to provide enough liquidity to cover profits.

• Real yield for LPs: RUJI Perps provides real yield for liquidity providers with multiple risk-adjusted options. LPs provide single sided deposits (i.e. provide liquidity in a single asset such as BTC) and earn trading fees in exchange for taking on counter trading risk. The ability to provide single-sided liquidity means LPs are not exposed to any impermanent loss, but LPs do take on counter trading risk, i.e. the more traders lose, the more LPs win, and vice versa.

• Sophisticated Trading Features: RUJI Perps provides features such as stop losses, take profits and limit orders. Traders can open multiple isolated positions, both long and short, on the same market. This feature allows for strategic hedging during volatile periods, as well as the flexibility to use different levels of leverage for each position.

• Market Stability Incentives: To ensure system robustness and protect liquidity providers, RUJI Perps employs a delta neutrality fee to incentivize balanced positions and delta neutrality caps to prevent new positions from significantly unbalancing markets. The delta neutrality fund rewards traders, especially arbitrageurs, who contribute to market stability by keeping the system balanced. It collects lump-sum payments whenever trader actions exacerbate unbalanced markets though open, update, and close actions, and distributes rewards to traders who bring markets back towards a balanced, delta-neutral state.

Fees & Fee Sharing with THORChain Base Layer

RUJI Perps generates revenue from various fee streams, which are shared between liquidity providers and the protocol (these fees may be adjusted from time to time on a general or per market basis to ensure protocol robustness):

• Trading Fees: Broken up into two components: (i) a percentage of the notional size, 0.1% by default; and (ii) a percentage of the counter collateral (funds borrowed from LPs for potential gains), 0.1% by default.

  • 70% goes to LPs, and 30% to the protocol.

• Borrow Fees: Dynamically adjusted based on supply and demand.

  • 70% to LPs, 30% to the protocol.

• Delta Neutrality Fees: This is primarily P2P, but anywhere between 5%-25% (depending on liquidity of the underlying spot market) is taken as a tax into the general fee bucket.

  • 70% to LPs, 30% to the protocol.

• Crank Fees: Collected by trading bots. This bots are run by the Rujira team, but can also be run independently by community members to operate the protocol in exchange for crank fee rewards.

  • 100% to Crank operators.

• Funding Fees: Funding payments are collected but are completely peer to peer.

  • 100% to traders.

All protocol fees collected by RUJI Perps are split evenly between RUJI and RUNE stakers, ensuring strong integration with the broader THORChain ecosystem.

For users, all of these fees and/or earnings are factored into your PnL in real time.

How does providing liquidity work?

On the Earn page, you can provide liquidity to the RUJI Perps protocol and earn yield for doing so.

Deposits are used by traders as counter-collateral for their positions. In return, you receive LP or xLP tokens that generate yield which comes from fees paid by traders. These are the APRs you see displayed for each liquidity pool.

Deposits are not risk-free. When traders win, counter-collateral is removed from the liquidity pool and LP/xLP tokens lose value. But when traders lose, your LP/xLP tokens increase in value. This is referred to as impairment.

LP tokens that are not currently locked in trader positions may be redeemed immediately for the liquidity that you provided.

Redeeming xLP tokens takes 45 days from when you submit the request—these tokens unlock linearly over this time period, and you receive the APR from LP tokens on the full amount.

Once you have accrued yield, you may withdraw it at any time directly to your wallet or reinvest it to earn additional yield.

For more information, please check: Position size versus locked collateral

Understanding Data Sources

RUJI Perps calculates price exposure by using external spot prices exclusively. These spot prices are provided by the underlying liquidity pools on THORChain, ensuring we always have the most accurate and up to date price information available on-chain.