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The beta is now deployed at cap.finance. Invite codes will start going out later this week on our Telegram.
The Cap beta is a proof of concept for our Perpetuals product which lets you trade cryptos with leverage using stablecoins, directly from your Ethereum wallet.
The beta is not fully decentralized. Below we describe how it works.
The beta has a simple and functional design that lets you deposit, open a position, close (or partially close) a position, and withdraw.
You first start by connecting your Metamask wallet. You then click on Deposit and enter an amount of DAI to transfer into the Hot Pool.
Once your transaction is confirmed (~ 5 blocks), your deposit is credited to your balance and you are ready to open a position.
Open a new position
The minimum margin is $1, meaning the minimum position size on BTC/USD (100:1) is $100. Your Buying Power indicates the amount you have available to open a new position.
Go long if you expect price to go up or go short if you expect it to go down.
Both your execution price and funding rate are displayed in the order review panel. Click submit to sign your request and send your order.
Close your position
Close your position to take profit or stop losses. You can select an amount to partially close. Closing a position is equivalent to submitting an order in the opposite direction.
Realized profits or losses are added to your balance.
Click on withdraw to request a withdrawal. During the beta phase, all withdrawals are manually approved and can therefore take up to 24 hours to process.
Behind the Scenes
Your profits are backed by the Cap Liquidity Pool (CLP), which we are funding for the duration of the beta. The CLP receives trader losses and pays out profits. By being a CAP holder, you hold a share of the CLP.
The Cap Perpetuals architecture is as follows.
The only authenticated request to our API is the new order submission (withdrawals are API authenticated during the beta but will later come directly from the hot pool).
Everything else is public: accounts and balances, positions, trade history, deposits, and more. These public API endpoints will serve to build tools dedicated to system transparency.
Deposits are processed directly from your Ethereum wallet to the Hot Pool address using eth_sendRawTransaction.
New order requests are signed with your wallet. This guarantees that it’s actually you submitting the order. Signing is free (does not cost gas).
Price feeds are provided directly from underlying crypto exchanges — specifically Coinbase and Bitstamp, equally weighted.
When you submit a new order, we’ll fetch the latest asset price then apply our Gaussian automated market maker rules to determine your execution price.
We believe there will always be demand for perpetuals trading without the downsides of full decentralization, namely high costs and lag.
Cap Perpetuals aims to use Ethereum where it makes the most sense, augmenting the user experience without compromising on speed and cost:
- no logging in or signing up
- superior security through wallet signing
- direct deposits
- stablecoins (stable balance)
- liquidity pool backed by CAP (community participation)
You can expect Cap Perpetuals to develop into a full-fledged professional trading platform where you can trade with high leverage directly from your Ethereum wallet. In the months ahead, we expect to introduce new wallet support, new assets, new stablecoins, an upgraded UI, and more.
As a CAP holder, you earn a share in the yield generated by traders. For a full recap of CAP tokenomics, see our blog post.
Over time we expect to reach a fully decentralized design for Perpetuals, backed by the CLP and an on-demand liquidation engine. We will likely offer these “decentralized perpetuals” as a separate product for traders who are not as cost- or speed-sensitive.
We’re also working on our Synthetics product, a fully decentralized way to trade any asset (non-leveraged) with a price feed, as well as other financial services under the Cap umbrella. Our roadmap post (coming soon) will describe those in more detail.