Web3 Decentralized Perpetual Exchange, Klimax

Klimax is a decentralized perpetual futures exchange (Perpetual DEX) on the Klaytn network that introduced an oracle-based architecture to overcome the limitations of the existing futureDEX. I participated in frontend and smart contract development and planning.

Background

Existing DEXs on the Klaytn network focused on spot trading, making it difficult to profit in declining or low-volatility markets. futureDEX supported long/short and leveraged trading but had the following issues:

1. Futures-Spot Price Gap (Price Pegging): Potential for unintended losses due to price discrepancies between exchanges
2. Price Impact: Price slippage during trade execution due to insufficient liquidity
3. Lack of CEX-Level UX: Slow execution speeds, repetitive wallet approvals, and other user experience limitations

Oracle-Based Architecture

Referencing GMX's architecture as a representative oracle-based exchange, Klimax addressed these issues as follows:

• Price Pegging: Trades are executed based on spot prices from centralized exchanges like Binance, reducing the futures-spot price gap to near zero
• Zero Price Impact: Utilizes its own liquidity pool to eliminate price slippage during trades
• Streamlined UI/UX: Kept only essential features, providing a user experience optimized for the blockchain environment

Key Differentiators

• Solving the Oracle Gap: Developed a proprietary price feed system to address the lack of reliable oracles on the Klaytn network
• Fee Reduction: Minimized trading fees by eliminating unnecessary procedures
• Optimized Liquidity Pool: Stablecoin-centric liquidity pool that minimizes liquidity provider loss risk and enables efficient operations