1. Liquidity Provision
Liquidity providers deposit assets (e.g., ETH, stablecoins) into the Swiv Vault.- This pooled liquidity acts as the counterparty to trader positions.
- The vault pays out trader profits and earns trader losses plus protocol fees.
2. Perpetual Trading
Traders connect their Web3 wallet to Swiv and open long or short positions.- Positions are fully on-chain, with leverage options available.
- Funding rates help keep perpetual contract prices in line with spot markets.
- Profits and losses are settled directly against the vault’s liquidity.
3. Fee Distribution
Fees from trading (including funding and transaction fees) are distributed to liquidity providers and the protocol treasury.- Future governance mechanisms will decide fee splits and token rewards.