Unlimited Open Interest

Efficient Liquidity, Unlimited Scale: The Future of Open Interest.

The World Market adopts a pool-based design as the primary settlement venue in its first iteration, leveraging its flexibility for diverse market offerings and collateralization.

However, it is different than the existing pool-based models.

In each World Market pool, liquidity moves with the market offering demands in real time. Because market offerings will usually higher than majority of the protocols, liquidity is dynamically allocated yet readily available.

For example, if a World Market pool has 500 market offerings and a total liquidity of 100M, it does not necessarily mean that the 100M is evenly split across the 500 markets. Instead, the entire 100M is initially available to each of the 500 market offerings. This creates a dynamic competition to utilize the liquidity, effectively eliminating idle liquidity and ensuring it is directed toward use cases that can employ it most efficiently.

To enable true price discovery and a familiar UX, we will be working on building a fully on-chain orderbook to scale the World Market’s liquidity. Later, we will introduce intent-based settlement to allow LPs and traders to hedge effectively and accelerate the World Market.

Orders will be routed to best trade execution venue price-cost priority.

Furthermore, the pool-based venue acting as the counterparty for the first iteration of World Market will leverage an orderbook to hedge itself. Additionally, market makers (MMs) or traders in the orderbook can use the intent-based model to hedge further, and vice versa. This ensures that liquidity is efficiently utilized across all models, enabling us to scale to a virtually unlimited open interest model. These venues — pool, orderbook, and intent — can tap into an Insurance Fund to borrow capital for hedging and covering costs.

This will enable the Pool-model design can support deeper liquidity than existing protocols, and make the World Market more capital efficient.

Our main goal is to make World Market accessible to all end users irrespective of the chain they are on.