Polynomial is developing a decentralized finance platform that features a native liquidity layer and hybrid order settlement to enhance the trading of derivatives on Ethereum's Layer 2. This infrastructure provides users with a centralized exchange-like experience while ensuring consistent access to liquidity across multiple protocols.
Funding
Funding not disclosed
Founders
Product
Problem
Trading derivatives on Ethereum Layer 2 solutions often lacks the user experience of centralized exchanges, resulting in fragmented liquidity and inconsistent performance across different protocols. This can lead to inefficient order execution and limited access to diverse financial instruments for DeFi users.
Solution
Polynomial is a decentralized perpetual exchange and derivatives platform built on its own Ethereum rollup, designed to provide a centralized exchange-like experience with a native liquidity layer. The platform aggregates liquidity through a hybrid order settlement layer, combining off-chain and on-chain mechanisms to optimize performance and provide access to a wide range of assets. Polynomial's architecture allows users to trade with up to 50x leverage, utilize cross-margin across all positions, and benefit from gas-free transactions, all while ensuring that a significant portion of protocol fees are distributed to stakers.
Target Audience
Polynomial targets DeFi traders seeking a centralized exchange-like experience on-chain, stakers looking to earn protocol fees, and developers aiming to build new financial protocols on top of a shared liquidity layer.
Features
- Native liquidity layer on an Ethereum rollup for hyper-scaling derivatives trading.
- Hybrid order settlement combining off-chain and on-chain liquidity aggregation.
- Support for multiple collateral types, including ETH, stablecoins, and other assets.
- Cross-margin functionality for efficient risk management across all positions.
- Up to 50x leverage on perpetual contracts.
- Oracle-based liquidation logic to protect users from price manipulation.
- Gas-free transactions through account abstraction and smart wallets.
- Staking mechanism that rewards stakers with 60% of protocol fees.
- TypeScript SDK and React components for developers to build on Polynomial's liquidity layer.