faq
Symblox Frequently Asked Questions (FAQ)
Welcome to the Symblox Frequently Asked Questions (FAQ) section. This guide is designed to address common questions regarding the Symblox. As the platform evolves, expect this section to see regular updates and revisions to ensure clarity and up-to-date information for our community.
Who is Symblox built for?
Answer: Symblox is built with both LPs and derivatives projects in mind.
Derivatives projects will be able to tap into Symblox liquidity both through existing markets like Perps and Spot Synths, or by building their own derivatives markets. We’ve explored some of the opportunities for new markets, like options, insurance funds, sports AMMs and more, all of which will be able to leverage existing Symblox liquidity to bootstrap trading activity.
LPs will have greater flexibility to allocate collateral to markets based on their risk profile. As mentioned in another answer, the new Pool and Vault system has two key benefits for LPs:
Better risk management: Users can select one of many liquidity pools, which are connected to one or more markets, allowing more fine-tuned control of LP risk.
Wider collateral range: The Symblox system is oracle agnostic, allowing any governance-approved asset to serve as collateral for borrowing sUSD and delegate to derivative markets.
How is SBX staking evolving with Symblox?
Answer: The power is with stakers in Symblox, thanks to multi-collateral staking and permissionless pools. Symblox creates a generalized system agnostic to collateral type. Liquidity providers can deposit any governance-approved collateral into Pools, which is then used to provide liquidity to derivative markets. In the future, the creation of markets and vaults will be permissionless, giving liquidity providers fine-tune control of their market exposure.
The new Pool and Vault system has two key benefits:
Better risk management: Users can select one of many liquidity pools, which are connected to one or more markets, allowing more fine-tuned control of LP risk.
Wider collateral range: The SYMBLOX system is collateral agnostic, allowing any governance-approved asset to serve as collateral for borrowing sUSD and delegate to derivative markets.
Stakers have an increasing range of Pools to allocate their capital. This gives stakers more control over their collateral as the SYMBLOX system provides many more options for fine-tuned control.
How is Symblox different from other derivatives platforms?
Answer: Simply put, Symblox isn’t like any other derivatives protocol because it isn’t a derivatives protocol. Instead, Symblox is a liquidity layer that helps to power derivative protocols with its infrastructure and liquidity. This is a new era of Symblox. New architecture, new premise, and a fundamentally new offering: the liquidity layer for defi.
Symblox will power a multi-market ecosystem, encompassing perpetual futures, spot, options, insurance, exotics, and more, all backed by Symblox Liquidity. With this vision, Symblox paves the way for a new generation of derivative markets, where builders can leverage the protocol and bootstrap their communities for success.
What is the Migration vision for Symblox ?
Answer: The end state goal of Migration Symblox is to power derivative markets on any governance-approved EVM chain with a fully interoperable system. This will allow Symblox-powered protocols to onboard traders on any chain and deliver the same low-fee deep liquidity trading experience to new users.
Why should projects integrate with Symbol Liquidity?
Answer: Launching a derivatives protocol can be challenging, with teams often faced with the cold-start problem – not enough liquidity to attract users, and not enough users to attract liquidity providers. With Symblox, developers can create new markets and seamlessly attract liquidity. In this way, almost any derivative protocol can be built on top of Symblox, as opposed to building from the ground up.
What incentive do projects have to build on Symblox?
Answer: The incentives for building on Symblox are numerous and impactful:
Infrastructure: Symblox abstracts away the complexities of building your own infrastructure. This enables derivative developers to primarily focus on market design and innovation rather than backend complexities.
Liquidity: A common challenge for most protocols is generating sufficient liquidity to support derivative traders effectively. Symblox addresses this with a deep liquidity pool to back derivatives, ensuring that protocols can thrive.
How will oracles be used permissionlessly in Symblox?
Answer: Symblox will maintain agnostic oracle management for markets. This means market creators can choose from multiple oracle solutions, including Chainlink and Pyth, to set up custom aggregation - giving them more control over the oracles that power their markets. The oracle manager opens up new opportunities for supporting new markets and assets.
Borrowing sUSD
Vaults offer LPs the option to borrow sUSD against their collateral without direct exposure to active markets, enabling users to access liquidity while maintaining their collateral position.
By understanding the role of vaults, collateral types, risk parameters, and account permissions, LPs can effectively manage their collateral and participate in the Symblox ecosystem, earning rewards and supporting the liquidity needs of derivative markets.
Vaults
Vaults are a fundamental component of the Symblox ecosystem, allowing liquidity providers (LPs) to deposit collateral and participate in the protocol. Vaults are designed to hold specific collateral types and are linked to pools, which aggregate and allocate liquidity to derivative markets.
Depositing Collateral
LPs can deposit collateral into vaults.
To deposit collateral:
1.Connect your wallet to the Symblox interface or a compatible third-party application
2.Enter the amount of collateral you want to deposit
3.Confirm the transaction and pay the associated gas fees
Once the transaction is confirmed, your collateral will be securely stored in the vault and can be delegated to pools to earn rewards.
Vaults and Pools
Each pool in Symblox has one vault for each approved collateral type. The pool owner determines the accepted collateral types for their pool.
Key aspects of the vault-pool relationship:
Liquidations of individual positions affect only the specific vault, not the entire pool
Entire vaults can be liquidated if the aggregate collateral-to-debt ratio falls below the liquidation ratio
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