Core Concepts

The core market logic is facilitated by Silica Pools. A pool is the set of all buy and sell positions within the same period (e.g. July 16 - July 31). Users can enter, trade, or close their positions anytime during the pool’s period. The Silica Pools are implemented as a system of smart contracts. To interact with Alkimiya, first you need to connect your wallet.

Connect wallet

Bullish

If you are bullish on the network activities during the pool’s period to spike (expect the average network transaction fees to increase), you can enter into a buy position.

Bullish: Long position profitable scenario

Bearish

If you expect the network activities during the pool's period to cool down (expect the average network transaction fees to decrease), you can enter into a sell position.

Bearish: Short position profitable scenario

How to Long transaction fees?

  1. You can see open orders, their price, and the total payment required to fill them

    Open orders, buy positions

  2. After selecting the orders, you can see a summary of the total size, and the price level of your trade. You are speculating that the final settlement value will be above this level.

    Buy positions, total size and price

Each market settles based on a different value, depending on the underlying index

MarketUnderlying IndexFinal settlement Value
BTC Tx FeeMedian Sat/vB per blockAverage of the median feerate across all blocks in the pool's duration
Base L2 GasGas spent per blockTotal gas spent in the pool's duration
  1. To confirm the trade, you have to submit an upfront payment for your buy position which is calculated as such: (Price−Floor)∗Size

  2. Scroll down to the Positions tab to view your positions. You will receive an ERC-1155 that represent your buy positions in the pool. You can freely trade these. All buy positions in the same pool are fungible regardless of their price.

    Positions

  3. Upon settlement on the pool's final date, you can claim your rewards!

#️⃣

Final Long/Buy Payout Calculation

Payout = (min(Cap,max(avg(index in Pool’s Period),Floor)) − Floor) × Size

How to Short transaction fees?

  1. You can see open orders, their price, and the total payment required to fill them

    Open orders, sell positions

  2. After selecting the orders, you can see a summary of the total size, and the price level of your trade. You are speculating that the final settlement value will be below this level.

    Sell positions, total size and price

  3. To confirm the trade, you have to submit an upfront payment for your sell position which is calculated as such: (Cap−Price)∗Size


  1. Scroll down to the Positions tab to view your positions. You will receive an ERC-1155 that represent your sell positions. You can freely trade these. All sell positions in the same pool are fungible regardless of their price.

Positions

  1. Upon settlement on the pool's final date, you can claim your rewards!

#️⃣

Final Short/Sell Payout Calculation

Payout = (Cap−min(Cap,max(avg(index in Pool’s Period),Floor)) − Floor) × Size