Tsunami Finance
Why is Tsunami Finance notable?
Tsunami is a DEX project that is more about margin trading than swap, the pioneer DEX margin on the system with a novel mechanism. And there is also a section quite similar to the GMX of the Aptos system. As everyone knows, GMX is one of the hottest projects this year. With its special operating mechanism and tokenomic, GMX from just a small Margin DEX with ~2% of dYdX's revenue, has increased sharply to 50%. Accordingly, the price of GMX also increased x3 and attracted a large amount of money flow into staking. Therefore, Tsunami with the same operating mechanism as GMX, launching on a "hot" ecosystem like Aptos, the potential is undisputed.
Project overview
Tsunami Finance is a project that is receiving a lot of attention with 24,000 followers on twitter and more than 20k Discord members, a large number compared to other projects on Aptos. However, Tsunami has not yet deployed the Testnet or has a specific plan for the launch. The first two features that will be implemented are margin trading and liquidity provision. Currently, Dapp has only completed the interface and tested the features. There are only 2 trading pairs initially, ETH and BTC.
Operation model
Tsunami Finance mainly serves two groups of subjects, namely Traders and Liquidity Providers.
👉 For traders, the project offers a trading solution with no slippage and low fees, while having good liquidity and supporting high leverage up to 30x.
👉 For liquidity providers, Vision Tsunami offers a good level of return and less risk than current AMMs. This is made possible thanks to the special LP mechanism of the project.
LP Mechanism
Tsunami's liquidity pool is built on a basket of tokens like many other LP pairs, usually 50% stablecoin and 50% a bluechip coin. For example, if you want to trade the USDC/ETH pair, you will need an LP with 50% USDC and 50% ETH. But the difference is that Tsunami does not use the price curve. For example, when buying ETH from Uniswap, the AMM mechanism will increase the price of ETH the more you want to buy it. Tsunami will use prices taken directly from Oracles such as Chainlink, Pyth, ... to match orders, so there will be no slippage.
So what to do if the trader trades too much and skews assets in the pool? For example, buying too much ETH leaves the pool with 90% ETH and 10% USDC, causing severe liquidity shortage for USDC. Tsunami will impose a "penalty" fee to control this.
For example, setting a benchmark for the pool of 50% - 50%, all transactions that deviate from this ratio will incur an additional fee. The further away, the higher the fee and can reach a maximum of 0.6%. For example, an order to buy ETH that makes the 50-50 ratio become 70-30 will incur a fee. On the contrary, transactions that pull the pool towards this ratio will enjoy the fee. As such, this fee will be paid by traders themselves to balance the liquidity pool.
➡ I think this mechanism is not too different in nature from AMM, and is built according to the future funding fee mechanism. So it will be difficult to make a big breakthrough. However, it is still necessary to monitor the effectiveness when the project goes into operation.
TLP - Tsunami Liquidity Token is the token representing the project's LP, when the user provides the token pairs, they will receive TLP in return. Similar to traders, if the supply of tokens is as close to the standard rate, the minting of TLP will also enjoy an additional bonus. And vice versa is a waste of money.
➡ In this regard, TLP is quite similar to GMX's GLP. However, GMX is successful because the project shares up to 70% of the revenue for GLP holders via ETH. According to Tsunami, TLP holders will now also receive the fee, but it is not clear how much. If it was as big as the GMX, it would be very noticeable.
Tokenomics
$NAMI is the token of the project. Currently Tsunami Finance still has no information or any revelation about the token launch issue. In the community, you can also see founders who do not want to launch tokens soon. $NAMI currently has only use case of governance, and can be minted early in the project's NFT later. This token doesn't have much of an element of expectation.
Team
The team behind the project is mostly anonymous. One of the key people on the team as far as we know is @EVNFT, an entrepreneur with a position in the crypto market. Formerly the founder of many startups, currently working for Tsunami Finance and Starspace.io, an NFT marketplace on the Sui ecosystem.
The project hasn't announced any backers yet, which is normal for most new projects on Aptos. But being followed and shared by Aptos Labs itself is also a plus in terms of prestige for Tsunami.
Roadmap
The project's roadmap does not have a timeline and specific targets, as it can be seen that the main product is still in the process of being completed. However, Tsunami has quite a lot of ambitions in the future and the project moves towards a multichain goal with products:
-Omni Nami Swaps: cross-chain swap
-Omni Nami Perpetual Futures: cross-chain long/short trading
-Cross-chain Liquidity Pool: Cross-chain liquidity
