Intro
Last updated
Last updated
Upshot's mission is to democratize market-making activities for on-chain consumers by providing two key services. First, it offers a more efficient swap for retail traders through intent-based technology, enabling direct transactions with market makers and significantly reducing DeFi trading costs. Second, Upshot provides a vault infrastructure where retail liquidity providers (LPs) can deposit funds. These vaults are managed by professional market makers, allowing retail LPs to benefit from the vault's performance and share in the generated revenue.
Trade Cheaper With Upshot Pool
Stop bearing the burden of additional inefficiency costs on DEX. Upshot Pool allows retail traders to buy/sell directly from market makers, short-cutting extra steps and making your DeFi trades much cheaper.
An Alternative Investment Opportunity Through Upshot Vault
Market makers are often equipped with advanced trading algorithms that consumers do not normally have access to. Upshot allows retail LPs to opt in and share the financial upside with MMs. This offers an investment alternative to opt-in to the 'pool', managed by MMs, rather than bearing the burden of impermanent losses to arbitragers on DEXs.
Low-risk, Low-management, More Returns
There are endless financial opportunities in DeFi. But lower-risk options often come with comparatively lower returns. Upshot is a secure and transparent infrastructure to invest in. Upshot empowers retail traders/investors with full control over your assets, allowing you to monitor all activities and secure funds on the blockchain. Vaults are managed by professionals, but only fund owners can withdraw their funds.
Gaining Opportunity to Engage Early-Stage Projects Before CEX Listings
Many MMs only trade on CEX, which creates a huge opportunity loss as they can only get involved when the tokens get listed. Upshot opens the door to new revenue from market-making DeFi tokens before the CEX listing happened.
Overcoming Challenges in DeFi
Trading and managing funds on DEXs for market makers is a totally different game. Upshot solves this problem by offering comprehensive trading tools in a unified API that resembles CEX integration, allowing a seamless and minimal effort integration.
In Upshot, we offer two distinct features for managing and utilizing assets:
Upshot Pool
Upshot Vault
The Upshot Pool is designed for makers who need to privately deposit multiple assets to fulfill limit orders. This option plays a crucial role in managing liquidity and ensuring smooth and efficient trading operations.
Before diving into the specifics of the actions, let's briefly explain the above diagram. This diagram illustrates the interaction between the Maker, Upshot Pool, and Taker
Maker publishes a limit order to Upshot’s backend, specifying the asset, quantity, and price. This order becomes available in the system, allowing users to match trades against it.
Takers looking to trade (e.g., selling ETH for USDT) interact with the backend to find the best price among makers.
The order request is verified for permission to use the limit order from the Upshot Pool.
Upon approval, the Upshot Pool transfers the required assets (e.g., USDT) to the taker.
The taker then transfers their assets (e.g., ETH) back to the Upshot Pool.
The Upshot Vault allows the public to securely deposit and withdraw assets. Once deposited, the vault represents the Upshot Pool, fulfilling limit orders and managing liquidity. Liquidity Providers can participate in trading indirectly, earning potential returns from trading fees or spreads.
In the Upshot Pool diagram, besides makers and takers, there’s a crucial role: the liquidity provider (LP). LPs contribute assets to the Upshot Vault, which is key to managing liquidity within the pool.
Takers seeking to execute a trade (e.g., selling ETH for USDT) interact with the backend to find the best price among makers.
Once a match is found, the request is verified and approved for the limit order from the Upshot Pool.
The Upshot Vault facilitates the trade by transferring assets (e.g., USDT) to the taker, potentially using LPs’ contributions.
The taker then transfers their assets (e.g., ETH) back to the Upshot Vault, ensuring a smooth and secure transaction.
LPs deposit two assets into the Upshot Vault, which represents these assets in the Upshot Pool for fulfilling limit orders. LPs can withdraw their assets at any time, removing their participation from the pool and managing liquidity.
Example: If the assets are ETH and USDT, the depositor might put in 1 ETH and 3000 USDT. These assets are used for limit orders. Conversely, withdrawing these assets reduces liquidity in the pool.
