🚀 Synchronized Liquidity Engine (SLE)

Moby’s Rocket-fueled Engine to Lead DeFi Innovation

What is SLE?

SLE, which stands for Synchronized Liquidity Engine, is the backbone of Moby’s innovation. It is named “synchronized” because it derives options prices in real-time and is synced with market data. It also acts as the engine that supports opening the exact opposite position for traders who trade against Moby’s Options Liquidity Pool (OLP) funded by LPs.

What can it do?

Real-Time Accurate Pricing based on Market Data

SLE is distinctive compared to existing models such as AMM adopted by other options protocols in that it can derive real-time accurate pricing for on-chain options.

For more information on how SLE derives real-time accurate pricing, read:

Mark Price

Narrowest Spread in the Market

Because Moby’s SLE is capable of deriving accurate pricing in real-time, Moby is able to impose the narrowest spread in the market for 50% ~ 80% of the instances compared to the leading CEXs.

The competitive spread enables more traders to trade on Moby in most instances. To protect Moby’s LPs, however, a Dynamic Risk Premium feature is applied. In extreme market conditions, spreads are amplified to discourage traders from trading positions that may harm Moby’s Options Liquidity Pools (OLPs).

For more information on how Moby derives spread and how its Dynamic Risk Premium model works, read:

Risk Premium

Abundant Liquidity

Thanks to Moby’s SLE, traders can open / close positions at the best price in the market, which would naturally lead to increased trade volume on Moby. More trade would incur more fees, which would be applied to incentivize LPs. LPs incentivized with high APRs would then be incentivized to inject more liquidity into Moby, which will again benefit traders with a more liquid trading environment.

Moreover, similar to leading pool-based DeFi protocols such as GMX, Moby’s SLE is designed in a manner such that liquidity is more concentrated for options with specifications that are more favorable to protecting Moby’s OLPs.

Outside of SLE, Moby also provides other features such as Combo Options to maximize capital efficiency by up to 240X, which effectively requires traders to effectively apply beyond 1,000X leverage.

For more information on how Moby’s Options Liquidity Pools (OLP) are designed and how Combo Options function, please read:

Risk Managing MechanismInstruments

Scalability for Future Applications

SLE is a truly innovative and effective model for resolving the issues other protocols are facing within the on-chain options space. One key aspect is how SLE’s pricing modules and other functions are designed. The backend infrastructure led by SLE is modular and blockchain network agnostic.

Also, each module can be easily modified to build further applications such as structured products, perpetual options, ultra short-term options, or any other options with virtually any underlying asset. The scalability and customizable nature of SLE make Moby suitable as an on-chain infrastructure for institutional adoption.