✨Smart Contract Order

We need a turing complete liquidity model

Typically, a perp dex utilizes either an AMM or an Order Book model. Users are limited to the liquidity mechanisms provided by these platforms.

For instance, in an orderbook prep dex, after depositing funds, you only have the option to place or cancel orders. On an AMM perp dex, you can only deposit tokens to a pool with presetting strategies to provide liquidity.

Is it possible to merge these distinct liquidity models? Or even better, could we accommodate all types of liquidity models?

It is this very idea that has driven us to design the Hybrid Liquidity Model, a Turing-complete liquidity model. This means it can realize any liquidity model you can conceive of.

Smart Contract Order (SCO)

The hybrid liquidity model is implemented by a novel technique known as "Smart Contract Order" (SCO).

You can embed any script into a "Smart Contract Order", which will execute upon settlement. This powerful feature enables us to construct any model, pricing curve, or strategy within the same settlement layer.

For instance, if the script calculates order prices based on the current position skew, it will function similarly to an AMM. Conversely, if the script solely verifies an EOA signature, it will operate like an off-chain order book.

What new features can be realized with SCO ?

Just in time liquidity

When providing liquidity, there is no need to deposit any funds into JOJO. Only when your order is settled, and the deposit operation is executed in the order script, will it be necessary. In this way, you can use funds that are already in other DeFi protocols to provide liquidity for JOJO while earning interest on them, greatly improving capital efficiency.

Managed liquidity pools

You can use an order script to build a capital pool that attracts retail investors' funds. The strategy of this capital pool can be freely determined, such as following the Oracle price and market volatility.

RFQs

RFQ refers to Request for Quote, which is aimed at large transaction users who wish to obtain exclusive liquidity and lock in quotes and counterparty. By using SCO, you can verify the counterparty's address and price within a script to provide exclusive liquidity.

Surpass Centralized Exchanges

We created JOJO with the conviction that decentralized perpetual trading holds a broader and more promising future than centralized exchanges.

SCO represents one of the best innovations exclusive to a decentralized computational environment. With SCO, JOJO isn't just another typical AMM DEX or orderbook DEX; it's a hybrid liquidity DEX that distinguishes the settlement layer from the liquidity layer. SCO enables developers to devise various liquidity models, thereby enhancing the trading experience like never before.

Need more documents ?

JOJO introduced SCO in the V1.1 contract, and the relevant developer documentation is still being written. If you are interested, you can contact contact@jojo.exchange to get more information and participate in early development.

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