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The Concept

Lemon Markets reimagines how perpetuals are traded onchain. Instead of order books or individual liquidity pools for every token, we use a peer-to-pool smart manager model.

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Dumb Market, Smart Manager Model

Lemon Markets uses a “Dumb Market, Smart Manager” modular model. When you open a trade, you are trading against a unified liquidity layer rather than a counterparty trader.
  • Traders: Win when the market moves in their favor, paid out through a tiered waterfall.
  • Liquidity Providers (LPs): Provide the capital for the Insurance Pool, earning fees and acting as the counterparty of last resort.

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The Payout Waterfall

To ensure solvency and capital efficiency, Lemon Markets utilizes a tiered liquidity backstop:
  1. Local Settlement: Payouts are first attempted from the specific market’s localized liquidity.
  2. Buffer Pool: If local liquidity is insufficient, the protocol draws from its own reserves (Buffer Pool).
  3. Insurance Pool: As a final backstop, the provider-funded Insurance Pool is utilized.

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NFT-Based Positions

Every position on Lemon Markets is an ERC-721 NFT. This architecture provides:
  • Composability: Positions are native DeFi assets that can be transferred or held by other contracts.
  • Data Integrity: Attributes like margin, leverage, and entry price are stored directly in the position metadata onchain.

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Virtual Markets

The Virtual Market system is what enables Any Asset trading:
  1. Modular Deployment: A lightweight Market contract is deployed for a specific asset ticker.
  2. Dynamic Allocation: The protocol coordinates PnL across the unified Vault.
  3. Infinite Markets: This decoupled approach allows Lemon Markets to scale to thousands of markets without capital fragmentation.

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Key Differences from CEX

FeatureCentralized Exchange (CEX)Lemon Markets (DEX)
CustodyExchange holds your fundsYou hold your funds (undeposited)
AccountEmail/Password + KYCCrypto Wallet (No KYC)
TransparencyBlack boxFully onchain & verifiable
Listing SpeedSlowFast & permissionless potential

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Why Trade Here?

  1. No Account Needed: Just connect your wallet.
  2. Diverse Assets: We aggregate price feeds to offer trading on obscure assets that might not have deep liquidity elsewhere.
  3. Revenue Share: Active traders earn points and potentially future governance rewards.