Chromatic Market

USDT-BTC/USD(ChainLink Push) Market

At the launch of the Chromatic Protocol on the Arbitrum mainnet, it commences with one market, USDT-BTC/USD(ChainLink Push).

• Settlement token: USDT

• Index: BTC/USD(ChainLink Push)

• Leverage level: tier 3 (maximum leverage x50)

• Minimum betting amount: 10 USDT

• Minimum liquidity add/remove amount: BIN 1000 wei, 0 USDT

• Minimum take-profit: 20%

• Maximum take-profit: 1000%

• Possible stop-loss range: 10%~100%

• Maximum claim wait: 24 hrs

Chromatic Protocol's Market

Chromatic Protocol is a decentralized perpetual futures protocol that allows anyone to design and launch futures markets in a permissionless manner. Each futures market is DeFi-native, independent, and carries segregated risks. To achieve this, Chromatic Protocol has implemented the separation of the underlying index and the settlement token within the futures markets.

Separation of Underlying Index and Settlement Token

In Chromatic Protocol, anyone can become a market creator. The market creator can create unique markets permissionless by combining an underlying index and a settlement token pair.

The underlying index, hereafter referred to as the index, represents the futures market's betting target.To ensure DeFi nativity, non-manipulable time series data from an external oracle is utilized to obtain the indexes. A settlement token is a betting unit and a currency for a settlement. Settlement tokens are ERC20 tokens listed by the protocol DAO.

A USDT-ETH/USD market in the following diagram is an example of a market that can be created by anyone. ETH/USD, the index, is a subject for takers to speculate and place bets on whether its price will rise or fall. USDT, the settlement token, is the currency used for margin to place bets and for settlement. In this market, if the ETH/USD increases by 10%, takers can make a 10% profit in USDT.

Separating the index and settlement token introduces a distinction from existing futures markets regarding contract quantity. In existing futures markets, one contract is defined as the value of settlement tokens corresponding to the current price of one index. For instance, one contract of ETH/USDT means the current price of one ETH in USDT. In Chromatic Protocol, however, the settlement token, a unit for betting and a currency for settlement, becomes the contract unit. In short, one contract is defined as one settlement token.

Advantage of the separation of the index and settlement token

By separating the index and settlement token, the Chromatic Protocol enables the creation of the most diverse range of markets among existing futures markets. It is possible to create markets by combining a single index with multiple settlement tokens. This means that a market can be formed by pairing a specific underlying index with various settlement tokens, offering different options for participants to engage in trading.

Also, takers can expect higher potential profit in the markets. They can benefit from both the appreciation of the settlement token's value and the profits from trading. For instance, in the UNI - ETH/USD market, if the holder opens a long position and ETH/USD increases by 20% while UNI increases by 10%, it would result in a total profit of 32% (1.2 * 1.1 = 1.32).

Binance	Chromatic Protocol
Markets that can only be traded with one settlement token for one index. For example, one market where only USDT-ETH/USDT pair can be traded.	Markets of various combinations of settlement tokens and indexes exist. For example, ETH/USD can be traded with multiple ERC-20 tokens such as USDT, AVAX, UNI, etc.
The trading unit is the amount of settlement tokens equivalent to the value of the index (in the above case, the amount of USDTs equivalent to 1 ETH).	The trading unit is 1 settlement token, which could be USDT, AVAX, UNI, or any other listed ERC-20 tokens.
There exist only markets created by the centralized exchange.	Various markets can be created by anyone in a permissionless manner.