The founders of Juiced all come from crypto quantitative trading backgrounds, where we worked on trading strategies and infrastructure. As we watched derivatives markets on solana evolve, we realized there was an opportunity to do what's called a basis trade: Enter a hedged position that collects derivative premiums.
This trade is a stable of cryptocurrency trading and responsible for huge profits among a privileged few in the centralized cryptocurrency trading world. We instead saw an opportunity to make it possible for anyone to benefit from this strategy, instead of just those trading firms with the resources and capital to do so on centralized exchanges.
What it does
At the core, Juiced is very simple. It enters into a short-perpetual, long-spot position for the user so they can collect the funding premium (which historically pays to shorts) without taking price risk. On top of that, it manages and rebalances positions as markets move up and down so users don't take on large positive/negative USD balances not returning yields.
How we built it
Challenges we ran into
Juiced is trading in fairly new markets, so market impact considerations permeate every aspect of our design. We've made a lot of design decisions that seem non-obvious, but are central to ensuring that we trade at a rate that the markets we're trading on can support without moving too out of line.
What we learned
Running this trade in a decentralized fashion has brought a lot of difficulties, but also made some things surprisingly easy. For example, you never have to worry about if you get filled or not, since you can atomically read the orderbook, send your trades, and validate after. This means your book always looks exactly like what you want it to.
What's next for Juiced
We're looking to expand in a few ways. One is that we plan to start interacting with various yield farms to farm extra collateral. This will greatly increase the yields since the user keeps the same funding returns while achieving yield returns at the same time.
We're also looking at more sophisticated strategies, that can do things like leveraged basis trading or automatically rebalancing assets to high-yielding perpetuals and yield farms.
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