Confidentia: Cypher on Mainnet!
Cōnfīdentia (n.): Assurance, Confidence, Boldness
There is no network like the Pyth network. Pyth is unlocking the best data for equities, commodities, FX, and crypto to empower pioneers across the DeFi space. The Confidentia is your weekly tidbit of alpha from these builders — but that’s a secret between us, OK?
This week’s all-star team: Cypher
Cypher recently announced their mainnet launch. You can now trade dated futures and indices on Solana. Get unparalleled market access and trade the untradeable!
Let’s take a dive and spit some hot bars…
Who is Cypher?
Cypher is a decentralized derivatives infrastructure standard built on Solana.
Cypher enables users to trade, borrow/lend, and cross-margin from a single interface. Initially, you can trade dated futures on the SOL/ETH pair, the BTC/ETH pair, and our Solana DeFi index, the SOL&P.
Cypher x Pyth
Cypher uses the Pyth oracle network to track the underlying for each market!
The oracle is responsible for pulling data, depending on the particular market and the lifecycle of the market. While a market is open for trading, an oracle is utilized to ensure there is sufficient capital in the system for collateral.
Dated futures expire to the underlying price of the asset. Cypher uses Pyth’s oracle network to ensure this expiry happens at the correct price. Pyth’s price feeds are foundational to ensuring protocol solvency and correct financial settlement on Cypher.
In the case that Pyth’s confidence intervals become too large, Cypher uses the most recently cached TWAP of prices until Pyth’s confidence intervals are back within the acceptable range.
Cypher is on mainnet. It’s time to trade the untradeable
Head over to our mainnet to trade three new dated futures products!
We currently offer three assets:
- SOL/ETH futures
- BTC/ETH futures
- SOL&P index futures
Unlike perpetual futures, dated futures do not carry a funding rate. Instead, dated futures expire after a certain amount of time to the price of the underlying asset. Currently, Cypher’s dated futures expire after one month of being initialized!
Both SOL/ETH and BTC/ETH futures allow you to bet on the relative strength/weakness of each asset against the other asset in the pair.
For example, assuming a perfect correlation between SOL and ETH, the SOL/ETH pair would not actually change in price. However, if the SOL price began moving up, while the ETH price remained constant or began moving down, the SOL/ETH pair would increase!
The SOL&P index consists of 11 Solana DeFi tokens including, SRM, HXRO, MNGO, and RAY. Each asset is weighted differently and will therefore affect the price of the index proportional to its weighting. You can trade the SOL&P to gain exposure to Solana DeFi as a whole!
In the case where you don’t want to trade, you can deposit USDC and start earning yield by supplying USDC for long positions to borrow!
We have comprehensive step-by-step tutorials on how to use all of Cypher’s features here!
We have an active Discord where we constantly have traders talking about the market. We also have weekly quizzes every Friday based on trading strategies and overall market dynamics to help you become a better trader. Winners receive 1 SOL!