Paperpetual - An paper trading app for crypto derivatives

Paperpetual: Paper perpetual contracts (I'm open to name suggestions).

Paperpetual allows you to paper trade crypto derivatives, mostly perpetual futures.

App

Source Code

## Why

US residents aren't allowed to trade perps and levered products due to regulatory reasons.

As FCA states, these products cannot be reliably valued by retail consumers because of the:

• inherent nature of the underlying assets, which means they have no reliable basis for valuation
• prevalence of market abuse and financial crime in the secondary market (e.g. cyber theft)
• extreme volatility in cryptoasset price movements
• inadequate understanding of cryptoassets by retail consumers
• lack of legitimate investment need for retail consumers to invest in these products

Anyways I wanted to make a perpetual future trading simulator to better understand how these products are structured, and how risky they actually are.

Perhaps one day regulation will loosen for those who demonstrate a strong understanding of these financial products.

Also wanted to practice basic CRUD with Solana programs. This is my first dApp.

## Implementation

My app uses APIs from exchanges to get trade data and update user balances acoording to their positions. Being a paper trading App, I'm able to host trading pairs from multiple exchanges.

User balance and position data are persisted through cookies by default. If chosen, a user may persist data on-chain in the Solana devnet by using their wallet.

The user account doesn't store actual SPL tokens, that would be an unnecesarily complicated and expensive implementation. I just used a PDA account that stores an array of floats.

I used devnet because its free real estate.

## Stack

• Frontend
  • Next + React
  • Tailwind + Material UI
  • Typescript
• Backend / On-chain
  • Anchor
  • Rust

## Stuff to implement

• More Pairs
  • FTX Levered tokens (no support?)
  • Binance (intl API key?)
  • Dex Perps (no volume lol)
• Limit and Stop orders
  • Can implement with cookies, but difficult on-chain
    • Somehow have to constantly poll outside data and make the program automatically change acc details
• Accurate pricing
  • I think my perp pnl is not accurate.
    • I think users receive and pay everytime the perp price deviates from the mark price.
    • How would I know, I've never owned perps