🏍️Overview
Ostium provides exposure to crypto and Real World Assets through synthetic perpetuals, which require the coordination of complex protocol interactions and optimized fee structuring.
Last updated
Ostium provides exposure to crypto and Real World Assets through synthetic perpetuals, which require the coordination of complex protocol interactions and optimized fee structuring.
Last updated
Ostium enables traders to take on long or short, leveraged, virtual price exposure to a variety of underlying assets. The protocol enables this by coordinating interaction between Traders, Liquidity Providers, and Protocol Services:
Traders, who are exposed to price variation and PnL changes as a function of their positions;
Liquidity Providers, who supply capital to the Market Making Vault, ensuring the ability to settle any positive PnL trades if the liquidity buffer is depleted;
Protocol Services, including pull oracle and automation services operated by partner networks to fetch asset prices and trigger automated orders (e.g., liquidations, limit orders).
The following diagram provides a high-level understanding of how these interactions occur:
The protocol charges one-time and compounding fees, on opening and holding a trades, respectively. At closing, no fee is charged, except in cases of liquidation. Variable fees seek to mitigate risks, and can change based on position size, OI Imbalance, volatility, and more. Fixed fees are used to pay for associated infrastructure costs (e.g., Oracle Price Service, Automation Keeper System, etc...).
We break down fees by action as follows:
Fees nudge the protocol towards equilibrium and reward counterparties for the risks they take on.
