Ariel Finance

Inspiration

In web2 world, there are many multi-asset class, general trading platforms. There are very few trying to implement the same in web3 and the ones doing that have limited themselves to traditional asset classes only. Perpetuals are crypto's crown jewel of innovation and we wish to push the horizon by introducing more innovative assets to speculate on with a high degree of leverage. All this with intuitive and user-friendly UI. One of the most unique assets we implemented is 'index of NFT floors'. After talking with a few pro traders we realized people wish to bet on a bag/index/segment of NFTs together rather than speculating on a specific NFT collection. For example, a Yugalabs index would be perfect for people who are bullish on BAYC, MAYC and Cryptopunks together. We have implemented exactly this in our product.

What it does

Ariel Finance is a Decentralized Derivatives Exchange. Unlike most of the current projects working on similar lines, we are allowing traders to speculate on innovative asset classes e.g. including index of NFT floors of BAYC, MAYC and Cryptopunks with 0.33 allocation for each. Ariel Finance uses the vAMM price discovery model with second order oracle cross-validation for liquidations.
It has a 50x isolated margin facility with Eth and USDC as collateral. Liquidity providers will provide liquidity into a pool and the trader would trade against it. Ariel has a single pool for all the listed assets with a dynamic utilization rate.

How we built it

We've built this on the Aurora network. Primary languages and frameworks include Solidity, Hardhat React.js, and ethers3js.

Challenges we ran into

vAMM model had some glaring flaws that surfaced during recent crashes. A protocol should never take more debt than it can repay to its users. We had to mitigate the chances of unidirectional trading of one asset busting the whole protocol. The process of figuring out the solution to this problem was one of the most challenging parts of our journey.

Accomplishments that we're proud of

We're proud of having built the most unique, secure and smooth trading experience.

What we learned

There are trade-offs with each price discovery mechanism: vAMM, orderbook, oracle etc. The end goal is to provide the users with the most secure trading experience with zero systemic risks.

What's next for Ariel Finance

We want to keep on experimenting and introduce newer assets to trade with while making the exchange more robust and secure. User experience is at the heart of Ariel Finance and we'll continue making it more user friendly.

Built With

• aurora
• javascript
• solidity