BAVA-MarginX Vault

Baklava_Chef · March 22, 2023, 10:09am

$Bava MarginX Vault

Bava Trader counterparty vault provides the collateral to create a counterparty pool to the trades done on Margin X decentralised exchanges. The funding fees and trading fees earned, and trader losses from the trades will form the yield for this vault. These strategy involved cross chain interaction. You may refer to our gitbook for more information.

What does the MarginX community think on this BAVA-MarginX vault?

zaccheah · March 22, 2023, 10:47am

iiuc, do you mean you’d like to create a usd position via collaterising $bava and use that usd-token to trade on MarginX? what is the intention behind this.

SCENE · March 22, 2023, 11:36am

I’m curious about how the mechanism will work behind this since it involves cross-chain interaction and if it’s done in real-time while maintaining decentralization or through a controlled contract.

Similar to GLP’s mechanism, where the house (depositors) always wins and traders always lose over time.

In this BAVA case, is BAVA the GLP pseudo-equivalent where deposits are used for liquidity and/or to countertrade the trades done on MarginX?

Make a profit when leverage traders make a loss
Make a loss when leverage traders make a profit

By pseudo equivalent, I mean since GLP is made up of a basket of assets while BAVA is not.

Do you mind elaborating further?

What is the win-and-lose scenario like for this vault?

Is this correct for the win-and-lose scenario?

Make a profit when leverage traders make a loss

Make a loss when leverage traders make a profit

If we deposit BAVA, how are you making a trade on MarginX which requires USDT?

I guess this will make sense with the recent MarginX roadmap with LP/Stable/Altcoin collateralized fxUSD which means new fxUSD pairs will be available by then.

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