🦺 RollX Trading Model – Technical Overview
1. Introduction
RollX Protocol introduces an innovative liquidity and trading framework with the support from the RLP Pool, designed to maximize capital efficiency, enable deep cross-pair liquidity, and support non-custodial leveraged trading.
This document details the system architecture, operational mechanisms, and liquidity dynamics of RollX — including its RLP Pool design, leverage infrastructure, and oracle integration model.
2. System Architecture
2.1 RLP Pool Framework
The RLP Pool serves as the central liquidity backbone across all perpetual trading pairs.
Unified Liquidity Layer — Liquidity is aggregated across pairs, allowing capital to be shared seamlessly between markets.
Market-Making Functionality — RLP minters act as liquidity providers, participating directly in the market-making process of perpetual contracts.
NAV Dynamics
The Net Asset Value (NAV) reflects the aggregate unrealized PnL of all open positions.
When traders experience losses, RLP NAV appreciates; conversely, trader profits reduce NAV.
Yield Accrual — Platform fees and funding payments are continuously injected into the RLP Pool, ensuring sustainable yield for liquidity providers.
2.2 BRLP Pool
The BRLP Pool functions as a secondary liquidity reserve, designed to stabilize the system during periods of insufficient liquidity in the RLP Pool.
Emergency Liquidity Provision — When market demand surges or unrealized pnl loss rises, BRLP assets are partially unstaked and converted to provide USDC liquidity.
Capital Efficiency and Safety — Once the liquidity imbalance is resolved, the system rebalances by restoring BRLP positions, ensuring both capital efficiency and the safety of underlying
3. Trading Features
3.1 Leverage Infrastructure
Crypto Perpetuals
Up to 100×
BTCUSD
Up to 500×
Traders gain enhanced buying power through optimized margin requirements and efficient liquidation thresholds.
3.2 Fee and Execution Efficiency
Deep RLP-backed liquidity ensuring minimal slippage
Incentive schemes to reward active traders and market participants
3.3 Oracle and Security Architecture
To ensure data integrity and mitigate manipulation risk:
Dual-Oracle Framework — Integrates CEX Oracle and Pyth Price Feeds for real-time, high-precision pricing.
Failover Resilience — Automatic fallback between oracle sources maintains continuity during latency or anomaly events.
Liquidation Safeguards — Protects traders from abnormal price spikes or temporary data disruptions.
3.4 Non-Custodial Execution
RollX Protocol as a fully non-custodial decentralized exchange (DEX).
Users retain full control of funds; all transactions are signed and broadcast directly from user wallets.
No intermediated deposits or withdrawals.
Position management and liquidation are enforced exclusively through on-chain smart contracts.
3.5 Capital Efficiency Model
All trading pairs utilize the shared RLP liquidity pool, eliminating the need for pair-specific capital provisioning.
The shared-liquidity design maximizes utilization, minimizes idle capital, and accelerates the onboarding of new markets.
4. Degen Trading Mode
4.1 Overview
The Degen Trading Mode delivers ultra-high leverage (up to 500×) with zero opening fees and zero slippage. Currently available exclusively for BTCUSD perpetuals.
4.2 Core Parameters
Leverage Options
500×
Opening Fee
0%
Slippage
0 (Guaranteed Execution)
Closing Fee
Dynamic, PnL-sharing
Collateral Input
Manual principal entry required
Maximum ROI
500% (for 500× )
Add-Margin Function
Not supported
4.3 Risk and Fee Dynamics
PnL-Based Closing Fee — Dynamically applied at exit to stabilize pool yield and prevent excessive risk exposure.
Fixed Collateral Model — Degen positions do not permit margin top-ups; users must monitor liquidation thresholds closely to manage exposure.
4.4. User Workflow
Launch the Trading Interface and select BTCUSDT.
Configure Leverage settings via the right-panel control.
Input Collateral (Principal) and optional Take-Profit %.
Execute Position through wallet confirmation.
Monitor Active Position — note that margin additions are disabled; liquidation occurs automatically when thresholds are breached.
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