What is Rage Trade? Things to know about Rage Trade

• What is Rage Trade?
• Liquidity problems that DEXs are facing
• Rage Trade Solutions
• How Rage Trade works
• Partner of Rage Trade
• Tokenomics
• summary

What is Rage Trade?

Rage Trade is a decentralized derivatives exchange built on the Arbitrum network. Rage Trade is building the only and most liquid ETH perp ommi-chain powered by UNI v3, allowing users to buy and sell ETH with up to 10x leverage. Rage Trade features include:

• ETH perp with 10x leverage
• Recreating omni-chain liquidity
• The yield-generating vault 80-20

Each 80-20 vault accepts a different LP position as collateral (e.g. Curve Tri-Crypto). Vault regenerates these LPs to provide liquidity on the Rage Trade ETH perp. The goal of vault 80-20 is to make more profit from users' LP positions while scaling the liquidity of ETH-USD LP in Uniswap V2. Rage Trade vaults maintain the following distribution of assets:

• 80% of TVL is in profit making service (Curve, GMX, Sushi...)
• 20% TVL provides centralized liquidity on Rage Trade

To attract all ETH and USD profit-generating assets, the LP will be able to reuse liquidity from all LayerZero-compatible chains.

Liquidity problems that DEXs are facing

To facilitate trading, DEXs often work with centralized counterparties to create liquidity. More and more decentralized derivatives exchanges are being created, but they all have the problem of lack of available liquidity.

Simply put, leveraged trading of ETH on the blockchain only works if there is enough deep liquidity. This is a big problem for most derivatives trading protocols as very few provide deep liquidity to traders without the price of inflation to the token. 

Besides, the projects also outperformed the competition in many other features, such as accurate Funding Rate, the most user-friendly and easy-to-use UI/UX for traders coming to the DeFi space for the first time. .

Rage Trade Solutions

Rage Trade aims to create high liquidity, focusing on facilitating transactions rather than creating project tokens. Rage Trade allows you to pool ETH-USDC LP pairs from all networks that support LayerZero , while keeping the LP safe and secure for the original blockchain. 

How Rage Trade works

On the Arbitrum network, users only need to deposit assets including stablecoin USDC into Rage Trade to start trading with up to 10x leverage. Besides, you also need to prepare some ETH to pay gas fees when trading. Currently, gas fees on Arbitrum are quite cheap, ranging around 0.1 USD or more.

Every trader has their own way of calculating PNL. To avoid liquidation, traders need to ensure that the account value is always higher than the required maintenance margin. Therefore, traders can withdraw and trade with unrealized PnL as long as the account value remains above the liquidation threshold.

Rage Trade Funding Rate is determined by a special mechanism called Forward Guidance which includes:

• The first is to calculate the standard marker index. This is probably the most commonly used one as it works best under standard conditions.
• The second is Oracle Chainlink, which gets its Funding rate feed from Binance. This Oracle is used when Funding rate on Rage Trade is different from CEX.
• Finally, manual update via admin vote. This is applicable in “emergency” situations.

Partner of Rage Trade

LayerZero is one of the key partners of Rage Trade, as Rage Trade operations such as deposits/withdrawals and multi-chain liquidity rebalancing rely heavily on LayerZero's cross-chain infrastructure. 

Recently, Rage Trade announced a partnership with GMX and revealed its plan to release Delta-Neutral Vaults on GMX. To prevent the GMX LP index from fluctuating, Rage Trade has turned GLP into a place dedicated to farming stablecoins. Farmers can take risks to generate profits using different strategies based on their risk appetite.

In addition, Rage Trade is also working closely with Dopex protocol – a leading Option Protocol on Arbitrum . The goal of this partnership may be to launch Atlantic Options or change the launch plan of dpxUSD.

Tokenomics

Rage Trade does not have its own token yet, but could launch one in the future. Initial users who have interacted with the platform will have a chance to receive an Airdrop if they launch their own token. Therefore, readers can experience the Rage Trade project for a chance to receive Retroactive . 

summary

Above is some basic information about the Rage Trade project – a potential decentralized derivatives exchange on Arbitrum. Rage Trade was created to solve the problems faced by DEXs. 

However, we will need to observe more whether the solutions Rage Trade is developing really work before we can make a quality assessment. Currently the project does not have a token, readers can experience the Rage Trade project for a chance to receive an Airdrop in the future.

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