Shorter Finance

Shorter Finance operates as a 100% on-chain, open-source decentralized finance (DeFi) protocol, developed by IPI Labs. The platform introduces margin trading and physical delivery of assets to the DeFi space, addressing a key market need for sophisticated trading tools outside of centralized control. Its beta version was launched after preliminary testing rounds were completed on February 25, 2022.

The protocol is designed to serve a diverse client base within the DeFi ecosystem, classified into three main roles: Providers, Traders, and Rulers. Providers supply liquidity to token loan pools and earn farming yields on their idle, single-sided tokens. Traders utilize these pools to borrow funds for leveraged margin trading, enabling them to short various tokens. Rulers participate in the protocol's governance, voting on proposals and engaging in liquidation activities to earn passive income. This structure allows users to engage in multiple roles simultaneously. The business model generates revenue for the protocol's treasury through activities on the platform. Its governance token, IPISTR, is integral to the ecosystem, used for staking, farming, and exercising governing rights.

Shorter Finance's core offering is a decentralized infrastructure for customizable derivatives trading and secure liquidations. Key features include transparent single-sided token loaning and farming, constant liquidity facilitated by an automated market maker (AMM), and visible position lifecycle management. The platform's architecture comprises several key components: Pools for token deposits, a Trading Hub that manages the logic between positions and assets, an Auction Hall for debt bidding and recovery, and a decentralized Committee for governance. A significant selling point is its 100% on-chain liquidation process and the capability for physical delivery of cross-platform assets, which helps to substantially reduce trading slippage. The system aims to provide a robust venue for users to short tokens without the interference of centralized services, positioning itself as a critical tool, particularly during bear markets.

Keywords: Shorter Finance, DeFi protocol, IPI Labs, on-chain margin trading, physical delivery, decentralized derivatives, token shorting, liquidity pools, yield farming, IPISTR token, crypto trading, decentralized governance, automated market maker, AMM, blockchain finance, crypto leverage, single-sided staking, on-chain liquidation, crypto derivatives, DeFi infrastructure, open-source finance