Asset Management

Any market requires one or more assets to be whitelisted for its successful creation. A non-whitelisted asset cannot be used for market creation. The protocol uses a two-step process to reduce the protocol’s security and systematic risk. All the logical implementation of handling asset-related parameters is stored in the Asset Manager. All asset-related parameters are available to be configured at the time when the user requests whitelisting of an asset by calling requestAddAsset(), which takes several asset-related parameters. Upon receipt of such request, the protocol validates the request and handles the addition of the assets based on risk parameters.

Some of the key parameters for an asset, for example, ETH requested to be whitelisted are:

Shortable: Allow anyone to short ETH.

Longable: Allow anyone to long ETH.

Stable: Allow anyone to use ETH as a stablecoin asset in the protocol.

Longable: Allow anyone to long ETH.: Allow anyone to use ETH as a collateral for trading.

Reference: Allow anyone to use ETH as a reference asset.

SwapEnabled: Allow anyone to swap for or to ETH.

LeverageTradingEnabled: Allow anyone to open ETH trades. Works only if Reference, Shortable and Longable are true for ETH.

DecentralizedSourcesEnabled: Allow ETH to have decentralized pricing source such as Chainlink, Pyth etc. for price discovery.

CentralizedSourcesEnabled: Allow ETH to have real world pricing sources such as Binance, Bybit, etc for price

For each asset, the Asset Manager will create an object of type CryptoAssetProps or TimedMarketAssetProps after performing mandatory checks actions both on-chain and off-chain, such as validating price feeds, chainids of the addresses and asset parameters. Upon passing all the valid checks, the asset will be whitelisted in the protocol to be used as a market asset.

As decentralized finance continuous to grow, we will see influx of unique assets emerging which can also be whitelisted in the protocol to create a market.