On-chain spot and derivatives trading infra built on Sui 🌊
At Efficacy Labs, our vision has always been to build products that provide users with flexibility and capital efficiency in expressing market opinion, empowering them to generate yield across cycles.
As of the day of writing this, BTC and ETH are down ~70% from their all time highs. The system has gone through a tough and quick develeraging with Terra, 3AC being the key stimuli. This only reasserts the fact that DeFi has a long way to go, and the path to that is via institutional adoption and derivative products that can absorb liquidity of that scale. And even in this bear market, we see signs of this transition.
ETH options open interest is at an all time high,
Blackrock just signed a deal with Coinbase Institutional
Paradigm OTC (a block trading platform for FTX future spreads) had it’s best month ever in terms of trade volume.
We’re seeing where the tide is headed, and Kriya is our first attempt to play a part in this growth.
The current landscape of DeFi derivatives is fragmented and crowded at the same time. Crowded with multiple projects, fragmented in terms of liquidity and composability. At the peak of the bull market, option backed vault products gained traction. They were at their time a “neat hack” to provide users with assymetric yield and discover price for short dated options. But it wasn’t scalable since these options were fully collateralised and limited strikes were traded every weak. EVM L1 chains couldn’t support CeFi comparable TPS and mastering an AMM for options / perps is a longer research problem that we believe will take time to solve.
With our suite of products, we’re trying to build liquidity bottom up
What is Kriya?
Simply put, Kriya is a super-fast derivatives trading DEX. We’ll start off with perps and slowly list options markets in a phased manner as well. This will allow us to build liqudity bottom up and the bear market has given us the privilege of time to build sensibly.
Kriya will be a non-custodial, on-chain orderbook based exchange. With Sui-Move’s parallel processing capabilities and unique consensus we can create front-running resistant orderbooks. We can achieve lower latency by leveraging the unique object architecture to define complex assets and split transactions.
However, we do plan to expand compatibility to other Move and Rust based chains in the next 6 month horizon.
Key Value Propositions
Capital Efficiency : We aim to leverage the low latency to make our margin system more accurate and allow for more intelligent cross margining of hedged positions. More info about isolated and cross margin coming on our docs soon.
UX : DeFi UX is way behind CeFi in its current form. We’ll bring better than tradFi features on-chain.
One-click position reversal
Place orders directly from the option chain
Multiple order types: IOC, Trailing SL
Seamless collateral management across multi-legged positions
Basic mode for retail
API trading via Chakra Suite
Non Custodianship and Low fee : One of the key propositions of DeFi in general is it makes things more transparent and accessible to retail.
For the forseeable future, fees will be low thanks to Sui, we’ll try to optimise our order routing till then.
All funds except maintenance margin stay in your wallet.
Now that we’ve revealed the big plan, hope you’re curious about what we’ve been upto
This should help: Kriya Community Update #1
If you’ve stuck till here, we really appreciate your interest in being excited about our journey. To stay in touch with our progress, do subscribe to this newsletter.