The problem SquaredLabs solves

Squared Labs tackles key issues in the derivatives market:

High Costs: Launching derivatives markets is traditionally expensive and time-consuming, requiring significant capital and complex setup processes.
Liquidation Risk: Traditional leveraged products expose traders to liquidation risks, potentially resulting in complete capital loss.
Fragmented Liquidity: Liquidity is often spread across multiple platforms, making it difficult to find optimal trading opportunities.
Complex Market Making: Setting up and maintaining market making operations is challenging and costly.
What Can People Use Squared Labs For?
Permissionless Derivatives Creation: Easily create automated derivatives markets for any asset without significant capital or complex infrastructure.
Liquidation-Free Trading: Engage in leveraged trading without the risk of liquidation, ensuring safer trading experiences.
Cost-Effective Solutions: Launch and manage derivatives pools quickly and cost-effectively, with no minimum liquidity requirements and fast setup times.
Seamless Cross-Chain Trading: Trade assets across multiple blockchain networks effortlessly, taking advantage of cross-chain liquidity.
Advanced Trading Tools: Access structured products, automated trading strategies, and hedging tools to enhance trading efficiency.
How It Makes Existing Tasks Easier and Safer
Simplified Setup: Launching derivatives markets becomes straightforward and fast, reducing time and cost.
No Liquidation Risks: Trade with confidence, as both long and short positions are protected from liquidation.
No Need for Order Books or Market Makers: Streamline trading by eliminating the need for complex order books and costly market makers.
Integrated Risk Management: Built-in risk management features ensure safer trading environments.
User-Friendly Interface: The Genie DEX provides a low-maintenance, intuitive trading experience for all traders.

Challenges we ran into

Firstly, due to the frequent use of division and exponentiation operations in our smart contract, precision loss became a significant issue. To address this, we utilized specialised smart contract libraries. For all the arithmetic, we used prb-math smart contract library.

Integrating with Coinbase's smart wallet was time-consuming. A major challenge was the absence of test networks on the smart wallet UI, necessitating transaction verification via the Sepolia explorer instead of directly through the wallet.

Apart from this, finalising the mathematics for the perpetuals model took decent number of iterations. A lot of simulations went into figuring out what parameters to be used for which asset.