Trade BTC Perpetuals with USDz on Krav
USDz holders can now gain direct access to BTC markets, leveraging USDz as collateral to trade BTC perpetuals. Krav is the pioneer quant perpetual futures protocol on Base.
Last updated
USDz holders can now gain direct access to BTC markets, leveraging USDz as collateral to trade BTC perpetuals. Krav is the pioneer quant perpetual futures protocol on Base.
Last updated
Overview
Anzen’s USDz is the first stablecoin supported in KRAV’s perpetual futures. We are excited to offer USDz users with direct access to BTC markets.
USDz holders may now trade BTC perpetual futures, or earn yield via KRAV’s liquidity pools. Users can leverage the stability and security of USDz to make perpetual futures trades on BTC, taking advantage of KRAV’s innovative trading platform and low fees. Likewise, users may leverage KRAV’s platform to earn yield on USDz in single token pools. To see more on how users can take full advantage of trading and yield earning, see the user guide below.
Earn 10x z-points multiplier for using Krav.
Dashboard: https://rwa.anzen.finance/dashboard
This guide covers the process of initiating and concluding trades with USDz through the Krav interface.
A Web3 wallet — Metamask, or WalletConnect connected to Krav.
ETH for Base network to pay gas fees.
USDz Tokens in your wallet. You can buy USDz on Anzen.Finance, or swap on Dexes like Aerodrome. See our contract page for token contracts.
KRAV provides three user modes for different demographics of traders. For new users, we recommend using Basic mode:
Basic: 2–50x leverage for new users, with an easier-to-read BTC price chart, and less risk of liquidations.
Pro: 2–100x leverage for more experienced users, with BTC price chart with candles, and trading interfaces that display open interest and more detailed trade-related data.
Degen: 50–200x leverage for the advanced traders out there, with the same interfaces as PRO.
1. Go to Krav Dapp: https://krav.trade/
2. Go to the app and Click “Connect Wallet” in the top right. You might need to refresh the page for the website to detect your wallet if it wasn’t unlocked yet.
3. If this is your first trade, you’ll need to approve the contract to use the USDz you want. Simply click “Approve” and submit the transaction to BASE chain — now you’re all set to trade.
1. Choose Trade Type (Long or Short):
Decide whether you want to take a long (betting the price will go up) or short (betting the price will go down) position on BTC.
2. Select Collateral (Pay):
From the dropdown option, select USDz, and how many you would like to use as collateral. This amount represents your baseline investment and is the maximum amount at risk if the trade is liquidated.
3. Set Leverage:
Choose a leverage multiplier for your trade. Leverage amplifies your exposure based on your collateral. Example: 1 KRAV collateral * 200 leverage = 200 KRAV token net exposure. Keep in mind higher leverage increases the risk of liquidation.
4. Specify Max Slippage: Set a maximum slippage percentage to protect your order. This will cancel your market order if the price moves significantly in your trade’s direction before it opens.
5. Upon providing the information above, the trade button will turn either green (for longs), or red (for shorts)
6. You can then click on the long or short button to execute the trade. Following the click, a final popup display will show details regarding the trade.
Entry Price: Price position enters (note: entry price may be impacted by price impact)
Liq Price: Price at which your position is liquidated
Fees: amount in fees paid
Collateral: your initial collateral
Leverage: your leveraged multiplier for exposure
7. After the transaction is submitted a popup will display in your Metamask, and KRAV will likewise display a popup that KRAV is waiting for the transaction to be signed on Metamask:
8. Once the transaction is signed a following popup will show that the trade is in the process of being confirmed
9. Upon Reaching a two block confirmation, a following popup will show that the trade has been successfully executed and confirmed
10. Upon Trade Open, the trade will populate below the BTC price chart in the Positions Chart. Here the collateral, entry price, current market price, and liquidation price may be viewed. Additionally, you may view the PnL of your position.
In order to close the trade, simply click the X under “close”:
Following this a transaction confirmation will popup in your wallet to confirm the closure of the trade.
Liquidity Provision is a simple task that involves placing your USDz into KRAV’s USDz LP. Here are the steps to add your USDz to KRAV’s vaults.
Migrate to KRAV’s “Liquidity” Page. Upon entering the Page, you will see KRAV’s various Liquidity Pools.
2. Select The USDz Pool and click “Add Liquidity”, and add however much liquidity you would like to add.
Note: LP’s may only withdraw 25% of their liquidity supplied at a time, with a 2 epoch (24–48) hour waiting period in between each withdrawal. Following this request wait period, the user must make the claim within a week long period — or request the withdrawl again. This withdrawal period exists to ensure stable liquidity of perpetual markets.
LPs may face a level of risk in trade impacts. However, KRAV institutes various dynamic risk mechanisms to help mitigate such impacts. For more, see below “Additional Notes on LP Yield and Risk”
3. Upon providing tokens into the LP head over to “Your Positions” tab where you may view your total liquidity, initial liquidity supplied, and your yield earned. Along with APR.
Note: APR is a dynamic formula that changes frequently based on volume.
LPs earn yield from trading fees. When a trade is opened and/or closed, a small percentage of the position size is collected as fees. The fees are set to 0.08% of initial position size for both opening and closing a trade.
Because LPs act as a direct counterparty to the traders, there is a level of risk due to trader net PnL impacts. Trader profits will draw from the liquidity pools whereas losses and liquidations will add to them. Liquidations occur when losses exceed 90% of collateral.
Maintaining a balance in longs and shorts helps LPs to remain delta neutral to BTC/USDT price movements. KRAV has implemented a dynamic price impact and funding rate mechanism to incentivize open interest balance and minimize trade impact risks.
The price impact mechanism employed by KRAV plays a critical role in maintaining balance within the liquidity pools by adjusting an individual trade’s open price based on the existing imbalance between long and short positions. The price impact skews the open price for any given trade, acting as a premium. Price impacts are only incurred when a trade acts to further imbalance the longs and shorts, thereby helping to mitigate net PnL impacts on the pool and incentivizing traders to balance the pools.
Price impact factor is set dynamically to mitigate the risk of overt one-sided exposure. Price impact takes into account the size of the trade, the size of the liquidity pool, and the long / short balance to skew the price of each trade.
Price Impact (%) = base impact factor / ((1 — imbalance ratio) ^ impact exponent)) * (absolute difference in OI after trade — absolute difference in OI before trade) / trade size * 100
The base impact factor is globally initialized to 0.01% and the impact exponent to 4, but they can be adjusted as needed to maintain liquidity pool health in volatile market conditions.
The imbalance ratio is the ratio between the absolute difference in open interest after trade and the size of the liquidity pool.
As a liquidity pool open interest becomes further imbalanced, the price impact will scale exponentially, resulting in far less favorable open prices for traders and disincentivizing them from continuing to trade in that direction. Furthermore, should trades continue to be made, the negative PnL from opening these trades will make it increasingly more difficult for traders to profit in the short term.
The funding fee is the most capital-efficient way of managing risk of live trades, limiting drawdown risk in case of violent market movement. Much like traditional funding rates, KRAV’s funding rate is a fee mechanism that minimizes liquidity gaps between open long and short trades over time.
The side with the dominant open interest pays funding fees to the opposite side at every block (every 2s on Base), with individual payouts proportional to the position size and factored directly into trader net PnL. Funding rate is calculated according to a funding fee per block percentage, set to 0.000002% per block (31.54% annualized), applied to the difference in total open interest between long and short positions. For example, if there are 1m long units and 500k short units, the total funding fees paid will be 31.54% * (1m — 500k) = 157.7k by the longs to the shorts.
For traders holding their positions over long periods of time in hopes of long term profit, they will continuously have to battle against funding rates if they are taking positions on the side of the dominant open interest. On the other hand, funding rates also create room for funding rate farmers, rebalancing the open interest and mitigating LP downside risk.
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App: https://rwa.anzen.finance/
Twitter: https://x.com/AnzenFinance
Discord + Support: https://discord.gg/anzen
