FAQs

What is Squared Labs?

SquaredLabs facilitate the creation of permissionless derivatives markets for any crypto or real-world asset, offering maximum leverage without liquidation risks through the Potentia protocol and a client facing DEX called "Genie" to create a derivatives ecosystem without liquidation hosted by SquaredLabs itself .

What are Power Perpetuals?

Power perpetuals are derivatives indexed to a power of the price of an underlying asset, key advantage being providing leveraged exposure without liquidations, Squared Labs enhances this mechanism by incorporating no liquidation risks for short trades within the Potentia protocol.

How do Power Perpetuals differ from traditional derivatives?

Traditional derivatives offer linear exposure, while power perpetuals provide non-linear exposure. This allows for greater amplification of returns without the associated liquidation risks.

What are the challenges with traditional futures and options?

Traditional futures and options face several challenges, including reliance on market makers, fragmented liquidity, complex structures, high liquidation risks, and time-consuming & expensive setup processes.

What is Potentia protocol?

Potentia is a permissionless protocol developed by SquaredLabs simplifying the creation of permissionless derivatives, addressing issues with traditional futures and options by offering features like no long-short liquidations, no need for market makers, and cost-effectiveness.

How does Potentia address the issue of long-short liquidations?

We will release an in-depth paper detailing how both long and short trades are shielded from liquidations before the main-net launch

How is there no need for active market makers in Potentia Protocol?

Potentia's built-in risk management features eliminate the need for active market makers, reducing costs and complexity, and making the platform accessible and efficient for all users. Protocol relies on one sided liquidity provisioning in the underlying asset. This makes it suitable for passive LPs that seek to avoid impermanent loss.

How cost-effective is Potentia compared to traditional derivatives?

Potentia is highly cost-effective, completely eliminating setup or management fees required to launch and manage pools like market makers with $500k setup costs, $50k/month maintenance, and native token supply commitments, which can be costly and risky.

How quickly can pools be launched on Potentia?

Pools can be launched on Potentia in under a minute with no minimum capital commitment. Users can also create test pools with as little as $1 liquidity to build confidence before adding more liquidity.

How can I stay updated with Squared Labs’ developments?

Stay informed by following Squared Labs on social media, joining the Discord community, and consulting the product roadmap on the official website.

What support options are available for Squared Labs users?

Support is available through the Discord server, where users can open support tickets for specific inquiries or participate in community discussions for broader insights.

Can i contribute to SquaredLabs?

Yes, we higly appriciate community contributions. Join our Discord to share your insights and ideas, or open a support ticket for private inquiries. Your feedback is vital for shaping the future of power perpetuals and our ecosystem. Read, learn, discover and join SquaredLabs through, White-Paper, Website, Discord, Twitter, Telegram.

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