From cc5b6ba93b7f2b299ab4062f1a1700ef2916f2b5 Mon Sep 17 00:00:00 2001 From: Guru Date: Sat, 7 Mar 2026 20:58:28 +0530 Subject: [PATCH] Add RFP-009 for Private Derivatives Trading Platform This document outlines the requirements and scope for developing a private derivatives and perpetual trading platform within the Logos ecosystem, emphasizing confidentiality and security for traders. --- .../RFP-009-derivatives-perpetual-trading.md | 137 ++++++++++++++++++ 1 file changed, 137 insertions(+) create mode 100644 RFPs/RFPs/RFP-009-derivatives-perpetual-trading.md diff --git a/RFPs/RFPs/RFP-009-derivatives-perpetual-trading.md b/RFPs/RFPs/RFP-009-derivatives-perpetual-trading.md new file mode 100644 index 0000000..7dd984e --- /dev/null +++ b/RFPs/RFPs/RFP-009-derivatives-perpetual-trading.md @@ -0,0 +1,137 @@ +--- +id: RFP-009 +title: Private Derivatives & Perpetual Trading Platform +tier: XL +funding: $XXXXX +status: open +category: Applications & Integrations +--- + + +# RFP-009 — Private Derivatives & Perpetual Trading Platform + +## 🧭 Overview + +Build a derivatives and perpetual futures trading platform that operates +entirely within the Logos shielded ecosystem, allowing traders to open +leveraged positions on shielded assets with full confidentiality over +their collateral, position sizes, entry prices, and liquidation levels. + +Derivatives trading is the sophisticated trading venue of any mature +blockchain ecosystem. It attracts professional traders, generates +substantial fee revenue, and dramatically increases trading volume beyond +what spot markets alone can achieve. On a privacy chain, confidential +derivatives are a powerful differentiator — traders can execute strategies +without revealing their positioning to competitors or predatory MEV bots. + +The ideal team has deep experience in perpetual futures mechanism design, +funding rate models, ZK circuit development for complex financial logic, +and trading platform UI/UX. + +## 🔥 Why This Matters + +Derivatives platforms are among the highest revenue-generating applications +in crypto. On Arbitrum, GMX generated more fee revenue than nearly any +other dApp globally, demonstrating the enormous economic potential of +on-chain derivatives. Berachain launched with a native perpetuals DEX +(Berps) from day one to capture this market immediately. + +On transparent chains, derivatives trading creates extreme privacy +vulnerabilities: every trader's position size, leverage, collateral, and +liquidation price are publicly visible. This enables targeted liquidation +hunting, where well-capitalized actors deliberately move prices to trigger +visible liquidation levels. It also exposes trading strategies to +competitors. A private derivatives platform on Logos protects all of these +details — collateral, positions, and liquidations are all confidential. +This creates a fundamentally fairer trading environment and represents a +significant ecosystem value proposition for attracting professional +trading activity. + +## ✅ Scope of Work + +### Hard Requirements + +#### Functionality +1. Support perpetual futures contracts on shielded asset pairs with + configurable leverage (e.g., up to 50x). +2. Traders can open, modify, and close positions entirely within the + shielded environment — position size, collateral, leverage, and + PnL are all confidential. +3. Implement a funding rate mechanism that balances long and short + interest, calculated on aggregate open interest without revealing + individual positions. +4. Implement a private liquidation mechanism — positions that fall + below maintenance margin are liquidatable, but the specific + position and trader are not publicly identifiable. +5. Implement a price oracle integration for mark price and index + price calculations with manipulation-resistant design. +6. Support both market orders and limit orders with private execution. + +#### Security +1. All position management operations must be verifiable via ZK proofs, + ensuring correct execution (leverage limits, margin requirements, + liquidation thresholds) without revealing individual details. +2. Implement an insurance fund mechanism to cover losses from + under-collateralized liquidations, funded by a portion of trading + fees. +3. Include an emergency pause mechanism to halt trading in the event + of oracle failure or detected exploit. +4. Implement position size limits and open interest caps during the + initial launch phase. + +#### Usability +1. Provide a trading front-end with real-time price charts, order + entry, and position management. +2. Provide aggregate market statistics (total open interest, 24h + volume, funding rates) without revealing individual positions. + +### Soft Requirements + +1. Support for additional derivative types beyond perpetuals (e.g., + options, structured products). +2. Integration with the Logos DEX (RFP-004) for spot-perps arbitrage + pathways. +3. Integration with the lending protocol (RFP-006) for cross-margining. +4. Support for portfolio margining across multiple positions. +5. Keeper network for decentralized liquidation execution. +6. Exploration of an order-book model as an alternative to the + vault/pool model. + +## 👤 Recommended Team Profile + +Team experienced with: + +- Perpetual futures and derivatives protocol design (GMX, dYdX, or similar) +- Zero-knowledge proof systems and advanced ZK circuit development +- Funding rate and liquidation mechanism design +- Oracle integration and price feed security +- High-performance trading system architecture +- Front-end development for trading platforms + +## ⏱ Timeline Expectations + +Estimated duration: **18–26 weeks** + + +## 🌍 Open Source Requirement + +All code must be released under the **MIT+Apache2.0 dual License**. + + +## Resources + +- [Logos Documentation](https://github.com/logos-co/logos-docs) +- [Logos Blockchain Node Quickstart](https://github.com/logos-co/logos-docs/blob/main/docs/blockchain/quickstart-guide-for-the-logos-blockchain-node.md) +- TODO: LEE official doc +- TODO: Shielded asset specification +- TODO: Oracle integration guide + + +## ✏️ How to Apply + +👉 Submit a proposal using the Issue form: + +**[Submit Proposal](https://github.com/logos-co/rfp/issues/new?template=proposal.yml)** + +We typically respond within **14 days**. For clarification questions, +please use **Discussions**.