BitPerp Docs
  • Introducing Bitperp
    • Overview
    • The Problem
    • Native BTC L2 Perpetuals
    • Ordinals, Runes, Anything
    • Product Guide
      • Opening/Closing Trades
      • Asset Classes
      • Video Tutorial
    • Media Kit
  • Technical Architecture
    • Synthetic Model
    • Liquidations
    • Fees and Spread
    • Loss-Mined Rewards (LMR)
  • Ecosystem
    • Connect with the Team
    • $BTP Token
    • Roadmap
    • Partners
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Synthetic Model

Battle-tested and proven architecture.

We utilize a synthetic asset model, allowing us to facilitate a wide range of emerging (Ordinals, AI, Gaming) assets classes with leverage. In regards to Ordinals/BRC20’s we allow for the trading of the following pairs here https://docs.bitperp.io/product-overview/asset-classes

As a trader posts their collateral (USDT) in our vault, when a trade closes, the same vault pays out the trader. If the trade is at a loss, the excess USDT is kept in the vault, contributing to the vault being overcollateralized over time. Once the USDT vault reaches an overcollateralization ratio of 130%, USDT is used to market buy and burn $BTP. This overcollateralization ratio can be lowered to 110% with a governance vote but discouraged due to protocol risks from inherent circular dependency risk.

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Last updated 2 months ago

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