Futureswap

About Futureswap

Futureswap is a decentralized and non-custodial perpetuals protocol that allows users to trade crypto assets with up to 30x leverage. Founded in 2019 by Derek Alia, the company is headquartered in San Francisco and operates in the cryptocurrency and Fintech sectors. Alia's background includes experience as a Frontend Developer at Aragon.

The protocol is built on Ethereum and operates on Layer-2 scaling solutions like Arbitrum and Avalanche to ensure low transaction fees and fast execution. It functions as a decentralized exchange (DEX) that utilizes an Automated Market Maker (AMM) model, tapping into the liquidity of established AMMs like Uniswap and Trader Joe to create leveraged trading pairs. This structure allows for permissionless and capital-efficient trading. The platform's business model centers on charging a configurable trade fee of approximately 0.1%, which includes fees from the underlying AMM. Revenue is also generated for liquidity providers (LPs), who deposit assets into liquidity pools to facilitate trades and in return earn passive income from these fees and other incentives.

Futureswap launched its V2 in January 2021 and its V4 in October 2021, which introduced improved price execution and capital efficiency by integrating with Uniswap V3. The platform has undergone security audits from organizations like OpenZeppelin and Trail of Bits to ensure the security of user funds, which are stored in non-custodial smart contracts. Governance of the protocol is managed through its native token, FST, which allows token holders to vote on proposals and guide the platform's development. The company has raised $13.6 million in funding from investors including Ribbit Capital, Framework Ventures, True Ventures, and Placeholder.