Perpetual Aggregator

How does SparkDEX's Perpetual Aggregator work?

SparkDEX's perpetual aggregator operates using a multi-level risk management system, designed to be both smart and self-regulating.

At its core, the system tries to resolve risks internally—maintaining a balance between long and short positions—until certain thresholds are reached, for instance, when 50% of the pool's balance is hit. Beyond this threshold, the system is designed to address excesses through cross-perpetual solutions on the Aggregator.

The Flow behind the Aggregator model

To go more into detail, the operation starts at layer 0 with an autonomous entry vault for each chain. Layer 1 then assesses the situation across other owned chains, and if necessary, Layer 2 involves the aggregator.

During a transaction, if aggregation is required for the user, the system seamlessly performs this in the background, ensuring efficient and secure management of trading positions. This multilayered approach enables the aggregator to handle varying levels of risk effectively, thereby optimizing the trading experience and safeguarding the assets within the ecosystem.