The Future of Premia V4

We’ve been heads down for a while, and for good reason. For the past year now, our efforts have been focused on building a massive upgrade to Premia.

Welcome to Premia V4 — or Kyan, as we’ve been calling it for a while now.

Kyan will live under the Premian Labs development umbrella alongside Archetype, our multichain DeFi aggregator, and implementations of previous Premia protocols.

Our aim is to redefine decentralized derivatives trading with a sleek, high-performance platform built for sophisticated traders.

Let’s take a look at what changes you can expect compared to Premia v3.

Premia v3 vs Premia v4

Orderbook Functionality

Unlike Premia v3, which aggregated liquidity from multiple sources, all liquidity for both options and perpetual futures on Kyan will be sourced from a dedicated CEX-like orderbook.

Kyan will launch with a full orderbook on day one, ensuring tighter spreads and sufficient depth for larger orders.

Types of orders supported will include:

• Market Limit: Executes at a specified price.

• Fill-Or-Kill (FOK): Completes entirely or not at all.

• Immediate-Or-Cancel (IOC): Allows partial fills.

• Request-For-Quote (RFQ): Ideal for larger orders beyond the orderbook's capacity.

Options, Perps, and Combos

Premia v3 provided users with vanilla options and strategy vaults. With Kyan, users will be able to trade options, perpetual futures, and customizable combo orders.

The strategy builder will allow users to create complex multi-leg strategies, such as butterflies, or employ delta-neutral hedges directly from a dynamic trading modal.

This versatility makes the trading modal a powerful tool for traders looking to implement nuanced strategies or optimize their risk while creating or modifying existing positions.

The Best of Both Worlds

Premia v3 emphasized user autonomy and full decentralization, but these strengths came at the cost of usability and performance.

Kyan shifts gears to focus on speed, efficiency, and institutional-grade trading features. It delivers tooling, latency, and liquidity on par with CEXs, but with the onchain transparency we’ve come to expect from DEXs.

The user flow will be simple; deposit funds on Arbitrum and start trading. All transactions will be verifiable onchain, but executed with a proprietary matching engine to reach the seamlessness of a CEX.

This infrastructure allows Kyan to offer faster execution, low fees, and a smoother trading experience while preserving the transparency and self-custodial nature that our users have come to expect from Premia products.

Portfolio Margin System

Kyan's portfolio margin system is a game-changer, especially for experienced traders managing diverse positions. Instead of assessing the risk on each position separately, the system will calculate it for your entire portfolio, using these two metrics:

• Initial Margin (IM): Determines how much additional risk you can take.

• Maintenance Margin (MM): Tracks your risk of liquidation.

If your MM breaches 100%, a liquidation engine will begin gradually closing risky positions to stabilize your margin.

Each asset will have their own, separate margin account. For example, my long BTC perp going down will affect the liquidation level of my long BTC call option, and vice versa. However, my long ETH call going down will not affect the liquidation level of my long BTC perp.

Onboarding and Accessibility

To start trading on Kyan, you just need to connect your wallet. The platform automatically creates an internal smart account tied to your browser wallet. This system simplifies trading by abstracting complex wallet mechanics.

Why Choose Kyan?

With a sharp focus on speed, transparency, and advanced trading features, Kyan introduces a robust infrastructure aimed at traders and sophisticated market participants. It’s not just a trading platform—it’s the culmination of 4 years’ work on decentralized derivatives.

With liquidity on Arbitrum, a highly efficient order matching engine, and a proprietary Layer 3 system, Kyan brings out the efficiency of CEXs with the openness and transparency of DEXs.

Whether you're trading options, perps, or building advanced combo strategies, Premia v4 (Kyan) provides the tools you need to navigate the complexities of modern markets with unparalleled speed and precision.

Questions about Kyan?

Stay tuned for more articles about Kyan!

If you have any questions, hop into our Discord or shoot us a message on X. We would love to know your thoughts!

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