Liquidity Provision

Market making is one of the most lucrative businesses in crypto, and Strike Finance decentralizes this opportunity, allowing anyone to become a market maker and earn profits. Anyone can provide liquidity on our platform and earn yield.

How It Works

When someone opens a long position on Strike Finance, they are essentially borrowing funds from liquidity providers. For example, if a trader deposits 100 ADA as collateral and opens a 10x long position, their total position size becomes 1,000 ADA. They are effectively borrowing 900 ADA from the liquidity providers.

Full Asset Backing

We back all positions 1:1 with the underlying assets. This means if there are 1,000,000 ADA worth of long positions on the platform, we maintain 1,000,000 ADA in the liquidity pool to support these positions.

Synthetic Trading Model

Unlike traditional perpetuals exchanges, no assets are bought or sold on the market when someone opens a position. These are simply synthetic bets between liquidity providers and traders. As a result, large buy or short orders have no effect on market prices, and there is no slippage