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Introduction

Overview of how Tails Exchange perpetual trading works, including key concepts and architecture.

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Key Components

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tS Pool - Rehypothecated Market Making

The tFTM pool represents a groundbreaking approach to liquidity provision on perpetual protocols, enabling participants to act as market makers on Tails Exchange while simultaneously tapping into yields from multiple DeFi protocols. This innovative strategy, termed “multi-protocol rehypothecated yield optimization,” offers tS holders diverse streams of income.

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tS Vault Mechanics

Participants contribute assets to the tS vault, receiving tS tokens as representation of their share. Tails Exchange strategically allocates these assets across a range of protocols to gain additional yield keeping capital efficiency high. The allocated liquidity serves a dual purpose:

  • It’s utilized for market making on the respective platforms, generating returns through trading fees and price movements.

  • Tails Exchange leverages this liquidity to facilitate trading on its own platform, creating an additional layer of yield opportunities.

The platform aggregates yields from all sources - trading fees, interest from lending protocols, and rewards from liquidity provision - and channels them back to tS holders.

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Advantages of Providing Liquidity to the tS Vault

Engaging with the tS vault offers several compelling benefits:

  • Full retention of rewards from integrated protocols (GMX, GNS, Ethena, and Aave)

  • A 50% share of Tails Exchange’s total protocol earnings

  • Exposure to potential gains from market making activities across multiple platforms

This multi-faceted approach to yield generation positions tS as a cutting-edge tool for maximizing DeFi returns.

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Trading Mechanics

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Perp Aggregator

One of the key unique features of our protocol is aggregation, providing a CEX-like UX that requires no MetaMask prompts to trade for speed.

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Risk Management

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UniDex Whitelabel

Built using UniDex’s aggregated liquidity, Tails Exchange benefits from a fully open-source, independent team, saving time while leveraging a very established protocol worked on for 3 years.