SEXP is a decentralized exchange for synthetic assets on Tezos, inspired by Synthetix. It lets users trade without slippage and with low fees. Our oracles make sure that you always get the best price.
In the SEXP system, there are traders, who hold different synths and trade synths for one another, and then there are stakers, who can mint sUSD against a SEXP collateral. When stakers mint sUSD, they take on a portion of the system debt, proportionate to their share of minted sUSD. Their portion of the debt remains the same but the debt in absolute terms increases and decreases in line with system debt. When traders are doing extraordinarily well, the debt grows and when traders are doing badly it decreases. Therefore staker's debt can change indirectly due to actions of the other participants in the system. When the debt grows after a staker mints sUSD, they are going to need more sUSD to unstake their SEXP. When the debt decreases, they are going to need less sUSD to unstake their SEXP.
There are many different synths, but stakers always mint and burn sUSD. Other synths can be acquired by trading sUSD for them. The main use case of the synths is to provide exposure to the price development of the asset they represent. The prices of the assets come from our oracles that are using Binance prices.
The trading fees that traders pay whenever they exchange one synth for another are collected and divided among all the stakers, in proportion to their share of the system debt. Each fee period lasts one week and after that the fees are claimable. The stakers don't have to claim fees manually as there are keeper bots that claim fees on behalf of stakers.
Stakers can mint sUSD by locking SEXP as collateral at a 400% ratio. Thus, a staker that wants to mint 100 sUSD needs to lock a 400 dollars worth of SEXP. When the price of SEXP changes, the collateralization ratio (C ratio) can change. If a staker's C ratio drops below 200%, they can be flagged for liquidation. Therefore, stakers should monitor their C ratio carefully and provide more SEXP as collateral as needed, or burn (repay) some sUSD to reduce debt. Once a staker is flagged for liquidation, they have 72 hours to fix their C ratio before they will get liquidated. If their C ratio reaches 400% before the deadline, the flag is removed and they can resume normal operations. Liquidated stakers lose their SEXP collateral which is used to repay their debt. Some or all collateral may be taken. The SEXP tokens taken in liquidations are collected, locked for a year and distributed to stakers, in proportion to their share of the system debt. This increases rewards for all stakers except those getting liquidated. Stakers with C ratio below 400% can't claim fees until they fix their C ratio.
Stakers with C ratio below the target ratio also have the option to self-liquidate. This will remove the liquidation mark and deadline, if there were any. It will increase the C ratio and remove part of the staker's debt at the cost of some of the staker's collateral.
Our smart contracts have not been audited. Smart contract bugs can lead to loss of funds. Oracle outages can lead to loss of funds. Tether volatility can lead to loss of funds. Trade only with funds that you can afford to lose. As a staker you take on a portion of the system debt. Your debt can change through actions of other participants.