🤝Itayose - Fair Price Discovery

The Most Efficient Way of Find Price from Orderbook Openings

The Itayose is a key process in our protocol that determines the 'opening price' for a new orderbook every quarter when the nearest orderbook matures. We accept 'pre-open orders' 7 days before the new orderbook starts trading and use the Itayose process to set the opening price. Only limit orders are accepted before trading begins.

Itayose Rules

Before Itayose

Seven days before the launch of new tenor periods, our platform will indicate that these new tenor periods are available for users to place their pre-open orders. Users can only place 'limit orders' on one side. One hour before the launch, the orderbook will be frozen, and users will not be able to take any action on the orderbook. This includes placing, amending, or canceling orders.

During Itayose

Once the orderbook is frozen, the Smart Contract for the Itayose process will be activated. This process consolidates all overlapping bids and offers. If there are no overlapping orders, there will be no matching, and the market will open without an opening price.

For all overlapping orders, we calculate the opening price based on:

  • The sum of the lend amount

  • The sum of the borrow amount

  • The execution amount of the opening price ("first come, first serve")

  • The imbalance between the lend and borrow

  • If there is no imbalance, the mid-price is taken

To encourage people to place opening orders closer to the market level for efficient execution and enable everyone to discover the opening price, transaction fees will be waived during the Itayose process.

After Itayose

All orders that were not filled by the Itayose process will remain in the Orderbook and start trading normally after the market opens. All orders that were executed by the Itayose process will be filled at the 'opening price'.

The Itayose Method is a critical part of our protocol, ensuring a fair and efficient opening of each new orderbook.

During this 7 days pre-open phase, our yield curve view provides additional transparency by displaying the Annual Percentage Rate (APR) calculated based on the estimated 'opening price'. This offers a clear picture of the expected yield at the time the market starts, giving participants valuable insights for making informed trading decisions.

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