NO pre locked liquidity, and the Capital Inefficiencies that come with it.
Based Markets are 100% economically sound & based-pilled.
PartyA Intent 1 BTC Long - PartyB responds 1 BTC Short
Alice (PartyA) sends an Intent to the contract (1 BTC Long), Bob (PartyB) responds, and opens a countertrade (1 BTC Short). Both sides lock collateral and are immutably locked into the trade. 3 Party Liquidators are now observing their position to ensure they are solvent at all times.
The Result, 100% economical and sound permissionless onchain derivatives.
Because all trades are isolated, the Based Market model allows for great capital efficiency.
Based presents a platform that provides true leverage not only for traders but also for Liquidity Providers. The System doesnt need overcollateralization on the LP side due to the platform's capability to isolate each trade, thereby eliminating all tail-end risks associated with an unsound system like GMX.