sky fuller

**xy=k eats spot trading (x+x')(y+y')=k will eat all defi** V1: Margin trading protocol No Leverage for Long-Tail Assets due to reliance on permissioned oracles. Solution(referred to as S): Trade any token (even meme/rugpull coins) with leverage from Day 1. Without permissionless shorting tools, scams will always exist S: Permissionless shorting for all tokens, enabling market self-policing. Free short selling powers the world's strongest financial market(U.S., Muddy Waters vs. Luckin Coffee). Low LP Earnings, LPs earn only trading fees. S: Quadruple yield: trading fees, margin interest, liquidation penalties, dynamic fees. flash loan attacks and price manipulation in margin trading S: mitigate flash loan attacks and price manipulation by implementing dynamic fees and truncated price introduced by Uniswap in Sep. 2023 User willingness to lend(e.g., willingness to lend x but not y) S: mitigate by structured liquidity Delayed liquidations -S: mitigate by a dual liquidation model V2: Unified Swap & Lending by (x+x’)*(y+y’)=k (ETHDenver 2025) Problems Solved: Inefficient Capital Use, Isolated protocols force fragmented liquidity. S: Shared liquidity pools for swaps and lending. No Lending for Long-Tail Assets, Aave/Compound exclude 99% of tokens. S: Lend/borrow any token, even new launches. Overcomplicated Lending Code, Aave’s 15k+ lines vs. Uniswap V2’s simplicity. S: By directly implementing the lending model through (x+x’)*(y+y’)=k, a streamlined lending just like Uniswap V2 contracts is achieved. In V1, (x+x’)*(y+y’)=k may face liquidity shortages when borrowable tokens are fully utilized. Solution: ERC6909 will become a new DeFi primitive, addressing the liquidity depth issue through lending (x'->x in LP) and enabling free circulation of x' and y' tokens. This ensures sufficient liquidity while maintaining price alignment between the LP and external markets.