What is overlay? Overlay is a Perpetual platform with many innovations that promise to bring many new experiences to users on the Ethereum and Arbitrum ecosystems. Besides, Overlay is also backed by many famous investment funds such as Parafi Capital, Polychain Capital, 1KX, The Lao,…
So what makes Overlay so attractive to leading investment funds? Let’s find out together in this article. Before that, people can refer to some of the articles below to better understand Overlay.
- What is Perpetual Trading? Top 4 DEXs Leading in the Perpetual Array
- What is GMX (GMX)? Overview of GMX Cryptocurrency
- What is dYdX? dYdX Cryptocurrency Overview
- What is ZKX Protocol (ZKX)? Overview of ZKX cryptocurrency
What is Overlay?
Overlay overview
Overlay is a decentralized Perpetual platform built and developed multichain. Overlay allows users to open Long – Short positions with x5 leverage for a number of crypto assets such as LINK, AVAX, MATIC, WBTC,… or some NFT collections like MAYC. Overlay hopes to allow users to Long – Short many different types of assets.
Besides being a Perpetual platform, Overlay also allows users to move assets between blockchains that Overlay supports.
Overlay difference
Overlay operations have many differences compared to Futures Contracts in traditional financial markets and a few differences compared to Perpetual platforms in the crypto market including: Oracle – based Pricing, Lack of Traditional Counterparties , No Limit Orders, Funding & PnL and Collateral.
- Oracle – based Pricing: Instead of using the Oracle of an infrastructure project, Overlay has a “point” that participates in providing prices of supported assets on Overlay.
- Lack of Traditional Counterparties: Overlay does not need liquidity providers to make the project work, but all activities around user profits and losses revolve around OVL.
- No Limit Orders: At the present time, with Overlay V1, the project only supports Market Orders instead of Limit Oders.
- Funding: Funding Rate is based on the imbalance between leveraged orders to encourage users to open leveraged orders on the imbalanced side.
- PnL and Collateral: Overlay’s native token OVL will be used as collateral. If the user has a profit, the OVL will be minted by the payment protocol for the user, and if the user has a loss, the user’s OVL will be burned.
It can be seen that Overlay with its operating mechanism
Overlay’s mechanism of action
To participate in using products on Overlay, proceed as follows:
- Step 1: Users will deposit OVL into the platform to open leveraged orders on Overlay with maximum leverage of x5 for various assets.
- Step 2: If the user closes the order and the order is profitable, the protocol will mint OVL to pay the user and will burn the user’s OVL if they lose.
Development Roadmap
At the present time, Overlay has not opened the product to everyone but only limited OVL rewards to some users of some projects such as Beacon, Gearbox, Sense Protocol,…
Core Team
Overlay is built by the team Deep, Mertioi.eth, Jonah, Scrabblemaster & Wloka. Besides, according to research and without official verification from the Overlay team, the team of this project is also related to Synapes.
Investor
- March 18, 2021: Overlay successfully raised $2.2M in Seed round with the participation of Parafi Capital, Polychain Capital, 1KX, The Lao,…
- November 1, 2022: Overlay successfully called for capital from individuals but had no information.
- February 2, 2023: Overlay continues to call for success in the Seed round but has no information.
Tokenomics
Update…
Overlay’s Information Channel
- Website: https://overlay.market/
- Twitter: https://twitter.com/OverlayProtocol
- Discord: https://discord.gg/m2U5vSr4gD
Summary
Overlay is a Perpetual platform for all markets both inside and outside crypto. With a relatively new operating model, it seems that Overlay will become a hot name in the Perpetual village in the near future.