Fermi Labs

Solving market structure for onchain trading.

Built @FermiTrade: perps on Solana
and @ContinuumChain: fcfs sequencing layer

[Fermi Labs @FermiLabs]

https://t.co/iGRXWSmV3I

[Fermi Labs @FermiLabs]

TL;DR:

> Type of takers responsible for price discovery: HFT/algorithmic and latency-sensitive traders.
> Type of venues dominating price discovery: CEXes and DEXes with low-latency FCFS microstructure.

Cancel priority, RFQ, and FBA microstructures deter the very category of trades responsible for the bulk of price discovery.

[Seldon @yettisheep4]

https://t.co/jQG4fTL9yk

[Fermi Labs @FermiLabs]

Today, we're releasing the Fermi Trade SDK.

Programmatic Access to Solana's fastest perps DEX is now open.

To access it, simply generate an API key on the frontend with your approved wallet.

More info and latency benchmarks below 👇

[Fermi Labs @FermiLabs]

The SDK can be accessed here:

https://t.co/rvyKLidvU7

We're actively onboarding Market Makers and High Frequency/Algorithmic traders, for whom state update latency is critical. If that's you, reach out!

[This is the end of the thread] (3/3)

[Fermi Labs @FermiLabs]

Today, we're releasing the Fermi Trade SDK.

Programmatic Access to Solana's fastest perps DEX is now open.

To access it, simply generate an API key on the frontend with your approved wallet.

More info and latency benchmarks below 👇

[Fermi Labs @FermiLabs]

Users can expect 2ms (p50) to 15ms (p95) confirmations and state updates on their transactions. (2/3)

[Fermi Trade @FermiTrade]

We've had a lot of questions on how @fermitrade enforces deterministic ordering on Solana.

Today we're releasing the full technical documentation, covering the design and working.

Dive in, or drop the link into your favourite LLM and ask away! (Link below)

[Fermi Labs @FermiLabs]

Next, we’re scaling up liquidity and allowing more users in. Three things we will ship by next month:

1. FLP token - passive LP token allowing users to make money via our internal MM strategy.
2. Points program - details will be revealed soon.
3. Increased deposit limits - from $1k -> $20k

dm for early access!
up only.

[Fermi Labs @FermiLabs]

After 15 days of invite-only beta of @fermitrade, here are some stats.

Orderbook perps SZN is here on solana.

[Fermi Trade @FermiTrade]

👀 hello world

[Seldon @yettisheep4]

Market structure remains a core issue preventing adoption of Solana Perps. Specifically, transaction ordering and inclusion within a block is discretionary, and exposes Market Makers to delayed quote updates, adverse selection, and pick-off risk.

As a result, they pull liquidity and/or offer worse prices. (1/n)

[Fermi Trade @FermiTrade]

Fermi Trade v1 is here.
Fully onchain execution. Guaranteed FIFO transaction ordering. Tradfi grade microstructure. <2ms optimistic finality. It’s all possible.

Invite-only Mainnet rolling out this week.

[Fermi Labs @FermiLabs]

"The expected value (EV) of being first in the queue is ~2X-3X of being last, for otherwise identical orders- based on a combination of fill probability and expected return."

[Seldon @yettisheep4]

https://t.co/qw0nKxxu67

[Fermi Labs @FermiLabs]

Problem: All leading perps DEXes use a centralised/trusted sequencer.

Solution: Proof of Sequence

[Continuum @ContinuumChain]

https://t.co/lIurFlH8yu

[Fermi Labs @FermiLabs]

9/10 of the top Perps DEXes today rely on a trusted, centralised sequencer. Is this really the future of France?

[Fermi Labs @FermiLabs]

A great overview of the approaches at play. Fermi Labs is betting that verifiable FIFO will be the optimal market structure that will win out in the end. Let the games begin.

[Seldon @yettisheep4]

https://t.co/En5xWqLlr3

[Fermi Labs @FermiLabs]

@toly the aliens are waiting for us to build onchain nasdaq before revealing themselves

[Fermi Labs @FermiLabs]

@toly All this reflects is increased retail participation in equities, on platforms like robinhood which use PFOF. it's not a defence of FBA in any way.

Here's the graph showing increase in retail paticipation over the same timeline:

[Fermi Labs @FermiLabs]

That’s an odd definition of “true fifo”

Most serious actors based elsewhere (say Tokyo), would prefer to transmit their desire to trade via private fibre, then sign and submit a tx from a collocated node in nyc next to the nasdaq server. There is no faster way for a Tokyo based signal to travel to nyc.

If the signal itself arises in NY, the placement of the trader is immaterial- they probably have an edge node in NYC designed to react to the information and place a trade without human involvement. The edge case of human in the loop + caring about +-100ms inclusion in a fifo queue rarely if ever happens imo.

And the tradeoffs of slower state updates seem like a price discovery killer