Mechanic

Lots of technical stuff on the following pages. Don't get bored. You've been warned...!

JuicyPerp is an open-source DeFi protocol that enables users to trade various asset price swings in a digital option like manner.

Battle Pools

Trading on JuicyPerp occurs in Battle Pools, which are liquidity pools with payouts determined by a Start (strike), End (resolution) price, and the pool's liquidity distribution. The core of the battle pools is a peer-to-pool mechanic, meaning users are not playing against an LP funded liquidity pool, but against other users.

A battle pool has three phases:

1. Pay-in Phase:

   • Users choose a side ("UP" or "DOWN") and add liquidity to the chosen side.

   • The Start price (comparable to a Strike price in traditional options) is set during this phase.

2. Locked phase:

   • No additional liquidity can be added to the pool during this phase.

   • User's added liquidity during the pay-in phase is also locked.

3. Liquidation and Payout phase:

   • The pool can be liquidated, and the End price is set.

   • Users can claim their payouts based on their predictions made during the pay-in phase.

   • Payouts follow a "Winner takes it all" principle, where users on the winning side can claim the entire pool's liquidity.

The Three Battle Phases

ERC-721 Representation of Battle Positions

Upon entering a Battle Pool, an ERC-721 token is minted into the user's wallet. This token represents the user's share of the pool and the right to claim a payout. Once the payout is claimed, the ERC-721 token is burned.

Meme coin Battles

JuicyPerp currently offers battle pools on meme coins. These pools open up every 3 minutes, have a pay-in timeframe of 45 seconds and a locked phase of 2 minutes and 15 seconds.

Explaining Pool Creation & Liquidation on the next page...