Lomus- Interest Rate Swap Perps

Inspiration

Interest rate swaps hold substantial volume in the tradefi market and have undergone several rounds of development in the cryptocurrency market. However, currently, there are a few issues: -Due to the existing AMM pricing mechanism, there's a significant risk of fluctuation in interest rate pricing. -Some underlying assets in certain interest rate products are centralized, posing risks of market manipulation. -UI design for interest rate-related products is complex, trade matching efficiency is low, and leverage rates are insufficient, making them less attractive to investors compared to other assets.

What it does

We propose the following solutions: -Lomus offers traders leverage of up to 10,000 times, significantly enhancing the elasticity of trader earnings during interest rate trading. -In the process of interest rate swaps, Lumos can simultaneously play two roles. Apart from the traditional market maker role, Lumos can also act as a stable counterparty to accommodate the massive demand for interest rate swaps, ensuring sufficient market depth and liquidity. -Additionally, different from existing interest rate products, Lumos predicts the risk-free rate at a future point in time using proprietary algorithms, engaging in a "bet" with traders.

How we built it

Challenges we ran into

For this product, we've developed a scenario involving an interest rate swap that completes Lido staking. Given the involvement of Lido staking rates, we considered using Chainlink. However, Chainlink's oracle quotes only provide price quotes for wstETH and suffer from delays in updates.

Accomplishments that we're proud of

Considering our product's requirements, using Chainlink automation to track Lido's rates is more timely and reliable. Chainlink automation can swiftly track the net value of wstETH after the Lido oracle quote, allowing for the calculation of interest rates for system settlements.