Solana Perpetual Trading Protocol

A complete decentralized perpetual trading protocol built on Solana blockchain with Pyth Network oracle integration.

🚀 Features

• Perpetual Markets: Trade crypto assets without expiration
• Leverage Trading: Up to 10x leverage on positions
• Real-time Pricing: Pyth Network oracle integration for accurate prices
• Funding Mechanism: Automated funding rate system
• Liquidation System: Automated liquidation of under-collateralized positions
• Risk Management: Maintenance margin, position size limits
• TypeScript SDK: Complete client library for frontend integration

📁 Project Structure

solana-perpetual-protocol/
├── programs/
│   └── solana-perpetual-protocol/     # Main Solana program
│       ├── Cargo.toml
│       └── src/lib.rs
├── client/                            # TypeScript SDK
│   ├── package.json
│   ├── tsconfig.json
│   └── src/
│       ├── index.ts
│       ├── perpetual-client.ts
│       └── pyth-oracle-integration.ts
├── tests/                            # Test suite
│   └── solana-perpetual-protocol.ts
├── Anchor.toml                       # Anchor configuration
├── Cargo.toml                       # Root Cargo configuration
├── package.json                     # Root package configuration
└── README.md

🛠️ Installation

Prerequisites

• Rust 1.70+
• Solana CLI 1.18+
• Anchor Framework 0.29+
• Node.js 18+

Setup

# Clone the repository
git clone <your-repo-url>
cd solana-perpetual-protocol

# Install dependencies
npm install

# Build the program
anchor build

# Run tests
anchor test

📖 Usage

Basic Setup

import { createClient, PythOracleIntegration } from './client';
import { Connection } from '@solana/web3.js';

// Initialize client
const client = await createClient();

// Initialize protocol
await client.initialize();

// Create a SOL/USDC market
await client.createMarket(
  1,                    // market ID
  "SOL",               // base asset
  "USDC",              // quote asset
  10000,               // initial price ($100.00)
  10,                  // max leverage (10x)
  1000,                // min position size ($10.00)
  1000000,             // max position size ($10,000.00)
  500,                 // maintenance margin (5%)
  10                   // trading fee (0.1%)
);

Trading Operations

// Open a long position
await client.openPosition(
  1,                    // market ID
  1,                    // position ID
  "long",              // side
  10000,               // size ($100.00)
  5                     // leverage (5x)
);

// Close a position
await client.closePosition(1, 1);

// Liquidate a position
await client.liquidatePosition(1, 1, userPublicKey);

Oracle Integration

import { PythOracleIntegration } from './client';

// Initialize Pyth oracle integration
const oracle = new PythOracleIntegration(connection, client);

// Get current SOL/USDC price
const price = await oracle.getSolUsdcPrice();
console.log(`SOL/USDC: $${price.toFixed(2)}`);

// Start price monitoring
await oracle.startPriceMonitoring(1, 5000); // Update every 5 seconds

🔧 Program Functions

Core Functions

• initialize() - Initialize the protocol
• create_market() - Create new trading markets
• open_position() - Open long/short positions
• close_position() - Close existing positions
• liquidate_position() - Liquidate under-collateralized positions

Oracle Functions

• update_price_from_pyth() - Update market price from Pyth Network
• update_all_positions_for_market() - Update all positions after price changes

Funding Functions

• update_funding_rate() - Update market funding rates
• pay_funding() - Process funding payments

🧪 Testing

# Run all tests
anchor test

# Run specific test
anchor test -- --grep "Open long position"

🚀 Deployment

Devnet

anchor deploy --provider.cluster devnet

Mainnet

anchor deploy --provider.cluster mainnet

📊 Protocol Architecture

Data Structures

Market

• Market configuration (leverage, fees, limits)
• Current price and funding rate
• Total long/short sizes

Position

• User position details
• Entry price, size, leverage
• P&L tracking and margin

PerpetualProtocol

• Protocol authority
• Global configuration

Security Features

• PDA-based accounts: All accounts use Program Derived Addresses
• Proper constraints: Account ownership and state validation
• Oracle validation: Price staleness and data integrity checks
• Risk management: Maintenance margin and liquidation logic

🔗 Integration

Frontend Integration

import { PerpetualProtocolClient } from './client';

const client = new PerpetualProtocolClient(program);

// Get market data
const market = await client.getMarket(1);

// Get position data
const position = await client.getPosition(1, 1, userPublicKey);

// Calculate P&L
const pnl = client.calculatePnL(position, currentPrice);

// Check liquidation status
const isLiquidatable = client.isLiquidatable(position, currentPrice);

📈 Production Considerations

1. Oracle Integration: Use mainnet Pyth price feeds
2. Error Handling: Implement retry logic and circuit breakers
3. Monitoring: Add comprehensive logging and alerts
4. Security: Regular audits and security reviews
5. Performance: Optimize for high-frequency trading

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Built with ❤️ on Solana