Welcome to RateX
World's 1st Leveraged Yield eExchange built on Solana
What is RateX?
RateX Protocol is a decentralized exchange (DEX) built on Solana, specializing in leveraged yield trading.
On RateX, users can trade synthetic Yield Tokens (YT) of various yield-bearing assets (YBA) with leverage, benefiting from yield movements in a capital-efficient way.
Besides leveraged yield trading, RateX provides two integrated features, Earn Fixed Yield and Yield Liquidity Farming, to meet various user needs.
Leveraged Yield Trading
RateX enables users to engage in leveraged trading of synthetic Yield Tokens (YT) of various yield-bearing assets (YBA). YT represents the yield component of the YBA and are subject to significant volatility, as their value fluctuates in response to changes in the APY of the YBA.
For instance, consider a YT of mSOL with a six-month maturity. If the implied yield increases from 7% to 9%, the price of the YT would rise by 26.8%. RateX's margin trading system allows traders to leverage their positions up to 10 times their deposited margin, thereby enhancing capital efficiency and amplifying potential returns.
Using RateX, users can:
Leverage Yield Position: Increase their exposure to yield by leveraging YT on margin.
Speculate on Yield Movements: Profit from changes in yield by trading YT on margin.
Hedge Yield Position: Secure a fixed APY for their YBA by shorting YT.
Earn Fixed Yield
Earn fixed yield helps holders of yield-bearing assets lock in future returns. When a user enters the earn fixed yield function and chooses to deposit their yield-bearing asset, they effectively convert a floating yield asset into a fixed yield asset.
For example, if Bob buys 1 SOL worth of JitoSOL and simultaneously sells a YT-JitoSOL2501 contract (with 3 months until expiry) at 0.015 SOL, which has an implied yield of 6%, he gives up the future yield of his JitoSOL and retains only the principal value of 1 SOL at maturity.
In this scenario, Bob has effectively paid 0.985 SOL (1 - 0.015 SOL) to acquire a principal token that will be worth 1 SOL at expiry. This results in a fixed yield of 6%.
Yield Liquidity Mining
RateX’s LP mechanism allows users to deposit yield-bearing assets (i.e., assets that can generate returns), and generates YT and ST for trading using a Uniswap V3 like AMM.
RateX LPs earn yield from three main sources:
The yield generated from their deposited assets
Rebates on trading fees
PnL from acting as counterparties. (The latter mainly comes from the price difference when YTs are traded and the future yield flow the LPs receive from holding YTs.)
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