Decentralized Perpetual Futures Trading Platform

A blockchain-based perpetual futures trading platform featuring automated liquidation, funding rate mechanisms, and a virtual AMM system.

Live Demo

Access the trading platform (Deployed on Vercel — works with the Sepolia testnet)

Architecture

This project uses a three-tier architecture:

• Frontend: React application hosted on Vercel
• Backend: Node.js service running on Google Cloud's e2-micro VM instance
• Smart Contract: Deployed on Ethereum's Sepolia testnet

Key Features

Trading Capabilities

• Open long or short positions with customizable parameters
• Multiple leverage options: 1x, 2x, 5x, 10x, or 20x
• Adjustable slippage tolerance (0.01% to 100.00%)
• Position management (close positions at any time)

Risk Management

• Automated liquidation system when net margin falls below maintenance margin
• Liquidation price warning
• Ability to add margin to existing positions to prevent liquidation
• Separate deposit management from position margin

Financial Mechanisms

• 8-hour funding rate cycle for balancing long and short interest
• TWAP (Time-Weighted Average Price) implementation using the last ten perpetual prices
• Virtual AMM with constant product algorithm for price determination
• Platform fees:
  • 0.05% of total trade size when opening positions
  • 5% of remaining margin after liquidation
  • 10% of gains during funding rate settlements

Technical Implementation

• Price-based heap data structure for optimized liquidation processing
• Fault-tolerant backend with:
  • PostgreSQL database for historical data persistence
  • Self-healing WebSocket connections
  • Blockchain polling for missed events
  • Fallback funding rate execution mechanism
  • Email notifications for system events

User Interface

• Interactive price charts with multiple timeframes (1min to 1week)
• Real-time position metrics (margin, maintenance margin, PnL)
• Notification system for important events
• Oracle price display for underlying asset (SNX)
• Tooltips for trading terminology

Security Features

• OpenZeppelin ReentrancyGuard implementation to prevent re-entrancy attacks
• Multi-layer validation (both frontend and smart contract)
• Protected administrative functions

Current Limitations

1. Single Asset Trading: Currently only SNX perpetual futures are supported
2. No Partial Position Changes: Positions must be fully closed before opening new ones
3. No Partial Liquidations: Positions are fully liquidated when triggered
4. Integer-Only Trading: Cannot trade fractional perpetual amounts
5. Fixed Maintenance Margin: Set at 2% of total position size
6. Transaction Requirements: All state-changing operations require wallet signature

Development and Testing

• Comprehensive test suite for all external smart contract functions
• Frontend validation to prevent common transaction errors

License

MIT

Contact

For questions or feedback, please open an issue on this repository or reach out at Jaisinghtomar9211@gmail.com.