[WIP] Representing perpetual swap positions as NFTs

I’ve been openly thinking about the different ways to increase the composability and interoperability of Perpetual Protocol, given that those qualities seem to be two of the most important factors for the long-term success of DeFi protocols (Yearn.finance, Aave, Dai, Curve) .

This is harder due to the fact that each perpetual swap position one has on Perpetual will be unique and can’t naively be tokenized in the same way debt positions on Aave can be or LP positions on an AMM. However, there may be some benefit from users’ tokenizing perpetual swap positions in a similar way to Yinsure Finance.

Use Cases

  • For example, a user would be able to sell or transfer their position to a different address for logistical reasons or if they’d rather sell the position to someone else rather than closing it.

  • I’m not 100% sure about the feasibility of this but tokenizing perpetual swap positions could be integrated into potential designs of leveraged tokens on Perpetual which would be more decentralized than the team themselves maintaining the required hedging mechanism for the tokens internally.

However, I’m aware that the use cases for this currently don’t seem overwhelmingly strong so more important factors to consider are mainly the technical feasibility of such a project and how long it would take.

What does everyone think? Here are some relevant reading materials for the concept of tokenized perp. positions.

Thanks!

2 Likes

It just comes to my mind but it will be kind of hard to implement if we have cross-margin in the future. Need to think more about this.

3 Likes