The Solution - Rysk v2

Rysk v2 has an innovative approach: credit vaults where liquidity providers supply capital to earn superior uncorrelated returns from rewards and sophisticated trading strategies. These strategies are run by market makers across multiple exchanges.

This system enables market makers to trade on orderbook decentralized exchanges without custody and generate returns on an exchange which is shared with LPs. The shape of this is a vault product which LPs deposit into and generate passive uncorrelated returns. This is combined with the Rysk DEX, a low-latency orderbook DEX with a CEX-like experience, creating a positive feedback loop of deep liquidity and solid returns.

Rysk v2 begins with decentralized exchange integrations and plans to incorporate centralized exchanges (CEXs) through Off-Exchange Settlement (OES) providers. This integration will enable access to off-chain liquidity and pricing, boosting efficiency across the DeFi ecosystem.

How Rysk v2 benefits each participant:

• Liquidity Providers (LPs) --- Liquidity providers gain access to a return stream that was inaccessible before Rysk v2. Market makers are able to generate a reliable and uncorrelated return stream from market making strategies. In addition, market makers typically harvest the lion's share of market making rewards on exchanges. Furthermore, LPs will gain access to trading fees from the Rysk DEX as well as access to liquidation flows.

• Market Makers (MMs) --- Market makers have access to a lot of liquidity and have to make 0 changes to their internal infrastructure and strategies. If a market maker is already trading on a given exchange, they can start immediately and start generating returns. In return, market makers can generate more revenues, performance fees, token rewards and reputation scalably. Market makers are now aligned with LPs and exchanges. These returns get boosted by the trading fees generated on the Rysk DEX as well as certain liquidation flows, further enhancing the return stream for MMs and LPs.

• Exchanges --- Enable passive user participation to have access to sticky, reliable and deep liquidity at day 1 from world-class market makers. Increase volumes, fees, offer a better experience for traders.

• Traders --- Trade into reliable and deep liquidity on any integrated exchange making the market for efficient.

Impact on the DeFi ecosystem: Rysk v2 boosts market efficiency through:

• Deeper liquidity and tighter spreads: Enhanced market liquidity benefits traders with narrower spreads across pairs and products (perps, spot, options, derivatives).

• Competitive, transparent market-making: Rysk v2 fosters a transparent, scalable marketplace for market makers.

• Broader participation in high-frequency market making: Opening access to sophisticated strategies that were previously exclusive.