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Decentralized Perp Exchanges Demystified: A Deep Dive into Bitoro’s Infrastructure

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Low to zero fees, no gas costs. Bitoro selects the most suitable liquidity route and minimizes the composite cost for traders while meeting the needs of opening positions.

Leveraged Trading Challenges

As the number of leveraged trading protocols on various blockchains increases, challenges start to emerge. Liquidity becomes fragmented, and the utilization of cross-chain liquidity becomes difficult. Additionally, inconsistencies in pricing mechanisms and margin parameters make it hard for traders to access optimal trading conditions. Bitoro's Leveraged Trading Aggregator was designed to address these issues.

Bitoro’s Liquidity Routing

Bitoro’s Aggregator Engine plays a crucial role in offering the best trading prices to its users. It does so by dynamically comparing trading prices from various leveraged trading protocols. The Engine not only assesses explicit costs like price, spread, slippage, and position fees, but also implicit costs such as max leverage, maintenance margin, and liquidation fees. The result is a selection of the most suitable liquidity route that minimizes overall trading costs for the trader.

Position Container

A central aspect of Bitoro’s secure trading environment is the concept of “position containers”. These are smart contracts that hold traders' positions. The position container isolates risk, thus ensuring safety for traders using Bitoro. Each position is held in a separate container, offering each trader the assurance that their investments are well-protected.

Cross-Chain Liquidity

With the landscape of on-chain leveraged trading, liquidity and users are often scattered across different chains. To address this issue, Bitoro uses the Universal Liquidity mechanism to offer cross-chain liquidity aggregation. This means that a trader can utilize the liquidity on another chain without having to access it directly, providing a seamless trading experience.

Liquidity Aggregation

Bitoro’s Aggregator Engine has the unique ability to consolidate scattered liquidity from different protocols. This service eliminates the need for traders to concern themselves with the liquidity supplier behind the aggregator, and instead lets them focus on the unified trading interface.

Bitoro has effective strategies to address the potential pricing differences that could arise from liquidity aggregation. The Aggregator works closely with underlying leveraged trading protocols for accurate pricing and bears underlying protocol pricing differences within a certain range, thus offering traders unified pricing.

Fee Structure

Bitoro applies a transparent and trader-friendly fee structure. It charges position fees when traders open and close positions, with the rate ranging from 0% to 0.1% depending on the market. Bitoro does not impose additional fees for funding, liquidation, or spreads. The Aggregator Engine ensures orders are routed to minimize the overall cost of opening and closing positions.

In conclusion, Bitoro offers a well-rounded, robust, and efficient infrastructure that lets traders tap into the full potential of decentralized leveraged trading. Its innovative Aggregator Engine, position container mechanism, and cross-chain liquidity offer traders the opportunity to trade seamlessly while maximizing their returns.

The User Interface: A Seamless Trading Experience on Bitoro

One of the defining features of Bitoro's decentralized leveraged trading platform is its intuitive and responsive user interface. This section of the article will guide you through the platform's core features and functionalities, designed to ensure a seamless trading experience for users.

Market Selection

When you access the Bitoro interface, you will be met with a market dropdown selection in the top-left corner of the trading screen. This feature allows users to swiftly switch between different trading pairs and assets. By simply clicking on the dropdown, you can browse through an extensive list of available perpetual contracts and select the desired asset you wish to trade.

Account Details

The “Account Details” section provides critical information regarding your trading account. It includes details about your total value, free collateral, buying power, margin usage, and leverage, all crucial components to effectively manage your trading activities on the platform:

Total Value:

Also known as total margin, this represents the total amount of funds in your trading account, taking both unrealized profits and losses from open positions into account.

Free Collateral:

This shows the amount of unused funds in your account that can be allocated to open new positions or maintain existing ones.

Buying Power:

This is the maximum amount of capital you can use to open new positions, based on your available margin and the platform's leverage rules.

Margin Usage:

This shows the percentage of your total margin currently being used to maintain your open positions.

Leverage:

This is the ratio between the total value of your open positions and your total margin. It indicates how much of your capital is used in relation to borrowed funds.

Placing an Order

The “Place Order” panel on Bitoro allows users to enter and manage their trades efficiently. With straightforward “Buy” and “Sell” buttons, users can quickly initiate long and short positions respectively. The order amount can be manually entered or adjusted using the leverage slider, providing users with quick adjustments of their position size according to their risk appetite and available margin.

Chart Interface

Integrated within Bitoro is a TradingView chart, providing a visual representation of an asset's price movements over various timeframes. Additionally, key data points above the chart give a snapshot of current market conditions for the selected asset, such as Index Price, Oracle Price, 24H Change, 24H Volume, 24H Trades, Open Interest, and the current Funding Rate.

Orders and History

The “Orders & History” section provides an overview of your trading activities. This includes tabs for “All Positions”, “Active Position”, “Open Orders”, and “Trades”, each offering detailed information about your ongoing and past trading activities.

Orderbook & Recent Trades

The “Orderbook” and “Recent Trades” sections provide real-time overviews of all recent orders and trades executed across all available underlying protocols for the selected market, offering valuable insights into the market's trading activity.

Governance

In terms of governance, the Bitoro platform operates a forum proposals and community discussions model. Any proposed modifications to the protocol are openly discussed on the forum. The Bitoro dev contributors transparently execute each proposal based on shared community opinions and notify the community through various channels before implementation. This approach ensures that Bitoro can make improvements quickly and efficiently, providing more value to traders.

In summary, Bitoro’s interface is designed with user experience at the forefront, making it easy for traders to unleash the full potential of decentralized leveraged trading in a powerful and cost-efficient manner. By trading directly from their wallet or custodian in a secure, fully decentralized environment, users can enjoy the optimal trading experience provided by Bitoro’s innovative platform.

Conclusion

Bitoro is significantly impacting the decentralized leveraged trading landscape by mitigating inherent challenges such as fragmented liquidity and inconsistent pricing mechanisms. Its innovative Leveraged Trading Aggregator, Position Container concept, and Universal Liquidity mechanism provide unprecedented security and seamless cross-chain trading opportunities.

Bitoro's intuitive and user-friendly interface complements its robust infrastructure, simplifying trading and providing full control to users. Its transparent, community-driven governance ensures continuous evolution in response to user needs.

In essence, Bitoro is setting a new standard in the industry, making decentralized leveraged trading more accessible and rewarding. It stands as a testament to trader-focused, secure, and efficient leveraged trading in a decentralized environment.