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Strike Protocol

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What is Strike?

Strike is the first decentralized perpetual futures exchange ever to eliminate the need for liquidity providers. It implements an asynchronous trading settlement mechanism, where winning trades are settled directly by losing trades, creating a completely peer-to-peer trading system.

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How It Works

1

Trade Creation

Traders open positions (long/short) with isolated margin up to 1000x leverage
2

Trade Closure

  • Profitable trades: Settle immediately if the treasury is sufficient, or enter the payout queue if not
  • Losing trades: Settle instantly, funding the treasury
3

Trade Settlement

  • FIFO queue processes payouts as funds become available from losing trades
  • $SLP is issued to the trader based on volume, pnl and treasury balance

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$SLP

SLP is a fungible token representing a trader’s share of the protocol’s treasury. It is directly minted to the trader when they close a trade and should grow in value as the protocol grows:
  • Rewards early traders for helping bootstrap the protocol treasury
  • Provides a loss cashback mechanism for losing trades
  • Once a treasury grows beyond a certain threshold (currently ~10m USD), it is used to buy back SLP

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Key Advantages

  • Better Economics: Fees that would go to LPs instead fund profitable traders and are used to buy back SLP
  • Infinite Markets: Any price feed can become a market with no upfront liquidity (coming later)
  • Unlimited Payoffs: Create any market with your payoff function of choice (coming later)