Part IV.

SYMMIO GitBook: Part 4 - Mechanics, Pair Trading, and Market Efficiency

Introduction

In Part 4 of our series, we delve deeper into SYMMIO mechanics, discussing the importance of the trading volume to collateral ratio, the power of pair trading, and how market efficiency is achieved. This discussion allows us to understand why SYMMIO has the edge over its competition and how it plans to attract and retain users.

Trading Volume to Collateral Ratio

Its striking trading volume-to-collateral ratio is at the heart of SYMMIO's efficiency. SYMMIO has demonstrated a unique capability to achieve high trading volumes with relatively small collateral. For instance, with $25,000 in collateral, the trading volume reached 6 million. This results from the test phase involving a select group of 250 users.

Comparatively, similar platforms require far more funds to achieve similar volumes. This points to SYMMIO's inherent efficiency and potential for growth. The high volume-to-collateral ratio is essential for potential users and investors, indicating a platform's capital efficiency.

Capital Efficiency and Pair Trading

SYMMIO employs leverage to maximize capital efficiency. The ability to trade using leverage and the unique feature of pair trading sets SYMMIO apart from its competitors.

Pair trading allows users to trade two assets against each other. For example, a user can short Bitcoin while going long on Ethereum. This practice offers a means of hedging, diversifying investments, and capitalizing on market trends. By allowing pair trading, SYMMIO grants traders the flexibility to customize their investment strategies and manage their portfolio risk more efficiently.

Bridging the Efficiency Gap

SYMMIO also bridges the efficiency gap between centralized and decentralized trading platforms. SYMMIO offers users a trustless, self-custodied trading experience, similar to other on-chain platforms. However, unlike many competitors, SYMMIO aims to provide a product range comparable to centralized exchanges.

The ultimate goal is to eliminate the trade-off between centralized and decentralized platforms. SYMMIO plans to leverage market makers to close the efficiency gap and provide more competitive trading fees to achieve this. It is believed that as more liquidity enters the SYMMIO ecosystem, trading costs will decrease, potentially becoming even cheaper than centralized platforms. The removal of the middleman in transactions furthers this efficiency.

Affiliate System and User Education

SYMMIO understands the importance of incentivizing users to migrate to its platform and retain them. To achieve this, an affiliate system is being designed, similar to the referral system used by FINA. SYMMIO aims to increase its user base and liquidity by rewarding users for bringing in new participants.

Education ensures users understand the product's full capabilities and benefits. SYMMIO is creating educational content on platforms such as Medium and Discord to address this. The goal is to provide valuable and accessible information to users, enabling them to leverage the platform effectively.

Conclusion

SYMMIO leverage system, pair trading feature, and plans to bridge the efficiency gap make it an exciting and promising platform in the DeFi landscape. The focus on education and user incentivization are vital strategies to attract and retain users. As SYMMIO continues to evolve, it holds the potential to become a formidable player in the decentralized trading space.