Litepaper

Abstract

This litepaper aims to outline the architecture of 0xMarkets powered by the Cartha Subnet. 0xMarkets is a Multi-asset Decentralized Perpetual Futures Exchange that offers traders the ability to lever up to 500x on currencies, commodities, crypto and other RWAs in a perimisionless manner. Liquidity is provided by the Cartha Subnet (SN35), built on Bittensor, where miners act as Liquidity Providers (LPs) for the 0xMarkets DEX.

Architecture

• USDC‑only collateral across markets; one vault per market for isolation.

• External price feeds from multiple oracles with validator cross‑checks and fallback.

• Protocol fees: 10% of trading fees to the treasury; optional treasury share of funding payments.

• Leverage: up to 500x; permissionless onboarding; fixed trading fee structure.

Cartha Subnet

Objective

• Operate as the decentralized liquidity backbone for 0xMarkets

Miner

• Deposit USDC into designated liquidity vaults; choose specific vaults/pairs.

• Maintain minimum collateral targets ($200k–$1M over time)

• Commit funds by epoch durations.

• Rewards

  • ALPHA emissions by deposit score (time × amount).

  • Trading fees: 60% of trading fees to miners.

Liquidity Provisioning

• Miners choose specific vaults/pairs to support

• Rewards

  • Alpha Rewards

    • Rewards allocated based on a deposit score

    • Deposit score is a function of time and amount staked

  • Trading Fees

    • Earns 60% of trading fees generated by the 0xMarkets protocol

Price Provisioning (?)

• External price feeds from multiple oracle providers.

• Validators cross-verify prices to prevent manipulation.

• Redundant fallback oracles for reliability.

• TBC - Confirm if we want to give this to miners

Validator

• Monitor markets for liquidation events.

• Post Alpha collateral to participate in liquidation execution.

• Slashing penalties for missed liquidations.

Liquidations

• Triggered when margin requirements are breached.

• 10% liquidation fee split:

  • 20% to validators.

  • 50% to insurance pool.

  • 30% to Alpha buyback & burn

Insurance Pool

• Funded via liquidation fees.

• Covers black swan events and liquidity gaps.

• Governance-controlled deployment.

DEX

Liquidity Provisioning

• USDC-only collateral across all markets.

• One vault per market for isolation of risk.

Traders

• Access to high-leverage perps (up to 500x).

• Permissionless onboarding.

• Fixed trading fee structure.

Protocol Fees

• 10% of trading fees to protocol treasury.

• Optional treasury share from funding payments.

Staking

• Alpha locking (veAlpha) for governance power.

• Longer locks = higher voting weight and fee share.

Governance

• Alpha Voting: Direct Alpha emissions to specific vaults.

• Fees Voting: Adjust fee splits and protocol parameters.