Market Design
Last updated
Last updated
In V2 of Perennial, markets natively net long positions against short positions, and only utilize maker liquidity to cover the resulting imbalance. This yields markets that are up to an order of magnitude more efficient in terms of open interest to required maker liquidity.
The maker side of the market is only required to cover the net exposure of the taker side: longs & shorts. Long and short taker positions are first netted out against each other with the resulting exposure directed to the maker pool pro-rata.
To help understand how different mixes of maker/long/short effect the market we've built a little simulator. Try it out for your self here:
