Domination Finance: A Tutorial

In this article, we are going to give you a thorough walkthrough of Domination Finance and break down each individual feature of the application. Although the world of synthetic digital assets and financial instruments may be tedious to interact with, it is simplified significantly with the Domination Finance interface.

Market Orders – Long

  • Opening a long order means you believe the value of that Domination Pair will rise or go up. To open a long order, simply click or press on the green “LONG” button. After you do so, a pop-up window will emerge:
  • Users are able to long all of the Domination Pairs with either ETH or DAI. Just click on the currency drop down option and pick the currency of your choice. The box directly to the right of the currency drop down is where you input the amount of ETH or DAI you are trading in the order. If you wish to make a trade with all the ETH or DAI you have available, just click the “MAX” button and it will autofill the maximum balance amount. 
  • The “You Receive” section displays the tokens you will be receiving in return. These will be stored in your web3.0 wallet of choice. If you are placing a “LONG” order you will be receiving BTCDOM tokens.
  • When you choose to close a long order, you will be selling your BTCDOM tokens and receiving either ETH or DAI back in return.

Market Orders – Short

  • Opening a short order means you believe the value of that Domination Pair will fall or go down. To open a short order, simply click or press on the red “SHORT” button. After you do so, a pop-up window will emerge:
  • In the “You Supply” section, input how much DAI you are willing to lock up as collateral in order to open a short position. This DAI is then used as collateral to mint BTCDOM tokens and sell them back to the market, creating a short position.
  • Each of the 4 transaction steps can be clearly seen on the confirmation page which will appear after inputting how much DAI you want to use as collateral.
  • Given that opening a short order requires locking up DAI as collateral and selling newly minted BTCDOM tokens, you will eventually need to buy back BTCDOM tokens to unlock your collateral and cover your short position:
  • In the “COVER SHORT” tab you will be shown how much BTCDOM you currently owe and are easily able to buy back that sum in full.
  • While in the “REDEEM” you can easily unlock your collateral by redeeming any BTCDOM tokens you possess in your wallet.

Add Liquidity

  • Besides trading your favorite Domination Pairs, you can also add liquidity and earn a portion of the trading fees as a reward for helping process the trades. 
  • If you would like to add liquidity, the first step is to press or click the gold “LIQUIDITY” button on the homepage. The following popup will then appear:
  • When adding liquidity, Domination Finance only accepts DAI. In the upper righthand box, simply input the amount of DAI you would like to add to the liquidity pool. Please note that add liquidity orders must be a minimum of 10 BTCDOM.  
  • Underneath, in the “You Supply” section, you will then see approximately how much crypto you will be supplying to that respective liquidity pool. 
  • If you click on “see more details…”, this will open a scrollable dropdown where you will be able to see more information pertaining to your liquidity position:
  • You will then be prompted to “REVIEW ORDER”, which will take you to a second screen where you will see five steps laid out which must be completed to successfully add liquidity.
  • Once the five steps shown above are completed, you may simply click FINISH to exit the popup window.

Remove Liquidity

  • When you have successfully added liquidity, you will then be able to remove liquidity at any point. Navigating to the remove tab will display two varying options of how you would like to remove liquidity:
  • In the “POOL + SYNTH” tab, you will be able to remove liquidity from the Uniswap pool and unlock your collateral in a single streamlined, transaction flow.
  • However, if you would simply like to remove liquidity from the Uniswap pool, that may be done via the “POOL” tab.

Managing Collateralized Debt Positions

  • Given that opening a short order or adding liquidity creates a Collateralized Debt Position (CDP), you will notice there is a liquidation threshold. That is the price at which you will no longer be able to unlock your collateral, however collateral may be added to existing positions at any time through the “MANAGE” button. 
  • The CR stands for collateralization ratio, which must remain above 110% at all times in order to prevent your position from being liquidated.
  • If you fear your position may become at risk, more collateral can be added via the gold “ADD COLLATERAL” button, which will then take you to the following screen:
  • You will now be able to input how much DAI you would like to add as collateral OR choose a new target liquidation price.
  • Alternatively, you can also unlock your collateral at any time to receive back your locked DAI. After hitting the maroon “UNLOCK COLLATERAL” button, the following screen will appear:
  • The “BUY BTCDOM” tab will show you how many BTCDOM tokens are needed to unlock your DAI collateral. That amount can be repurchased easily via our interface.
  • Subsequently, you then must navigate to the “REDEEM” tab and repay your BTCDOM debt to unlock your DAI:

Disclaimer

  • Depending on how much liquidity is in the pool, there may be a high price-impact on your order. This is also known as slippage. If this does happen, a “SAFETY LOCK” will emerge at the bottom of the modal. If you still want to go through with the order, click on the “SAFETY” button and you will be prompted to type “confirm” in the empty available space, allowing you to proceed with your order.