Domination Finance Overview

Exchange Model

Users can place orders, which can be triggered to change their positions. Each user may have multiple positions, each with its own margin, leverage, and dominance index. Positions change in value according to their entry price and leverage. These virtual positions are all denominated in a single collateral token: USDC. Users transfer collateral only as needed to open or increase positions; we do not require them to top up an “account” before they can trade. Liquidity providers are the counterparty to all positions, not other traders.

Learn more about our exchange model in Perpetual Exchange.

Dominance

Each position's value is tied to a dominance index. See Dominance.

On-chain Contracts

The core contracts of the exchange are:

1. Vault – holds liquidity provider funds that collateralize the exchange’s trade positions
2. Perpetual Exchange – tracks perpetual trade positions
3. Order Book – tracks pending orders while holding trader margin before trade execution

For more technical details, see the Contracts section.

Off-chain Services

Domination Finance runs off-chain infrastructure to

• execute orders in OrderBookV1 when on-chain trigger conditions are met
• liquidate positions in DomFiPerp when they become undercollateralized
• show trades and prices in our user interface

These bots are written in Rust for resource efficiency and local compute capabilities. In order to submit transactions the instant that conditions change, they must continuously monitor prices and on-chain state. To do this they utilize our in-house Query Engine, built on top of PostgreSQL. Read more details in Off-Chain Services.