Case Study

REAX

Synthetic asset protocol on Mantle.

500+

Synthetics Supported

125x

Maximum Leverage

Multiple

Price Oracles

REAX

reax.pro

SolidityMantleReactTypeScriptDIA Oracle+5 more

Project Overview

About This Project

REAX is a synthetic asset protocol on Mantle for minting and trading on-chain exposure to crypto, equities, forex, and commodities. We built the core architecture, debt pool model, collateral logic, oracle integrations, zero-slippage synth trading, leverage modules, and frontend trading flows. The system supports 500+ assets, up to 125x leverage, and DIA plus Pyth price feeds.

Client

REAX

reax.pro

Timeline

Start

July 2023

Completed

June 2024

Duration

11 months

Phase 1: Architecture and Core Protocol

Phase 2: Smart Contract Development

Phase 3: Advanced Features and Frontend

Phase 4: Testing, Audits, and Launch

Technologies

SolidityMantleReactTypeScriptDIA OraclePyth NetworkEthers.jsHardhatTheGraphVercel

Why We Built REAX

REAX was built for on-chain synthetic exposure without AMM slippage or fragmented liquidity. Users deposit collateral, mint synths that track external markets, and swap between those synths at oracle price. The protocol covers crypto, equities, forex, and commodities through a shared debt pool model. No wrapped asset custody. No bridge dependency for the traded exposure. ChainScore Labs built the architecture, contracts, integrations, and trading frontend over an 11-month build with Mantle Network.

How the System Fits Together

Core Protocol Architecture

REAX runs on a shared debt pool model. Users deposit collateral to mint synths, then the protocol layers trading, margin, perps, and options on top. The architecture is modular so risk parameters, market pools, oracle feeds, and product modules can be upgraded independently.

Isolated Market Design: Markets are split into separate pools for crypto, stocks, and forex, each with its own collateral types and risk parameters.
Shared Debt Mechanism: Each pool shares total debt proportionally across participants, giving the protocol shared liquidity without creating a separate CDP for every asset.
Multi-Collateral Support: Each pool accepts different collateral (USDC, ETH, TLOS) with dynamic C-Ratio requirements tuned to the risk profile of that specific market.
Oracle Integration: We wired up DIA and Pyth as primary oracle sources. Multiple feeds per asset, with aggregation logic to filter out bad data.

Market Pools

Crypto, Stocks, Forex

Multiple

Collateral Types

Per market isolation

Oracle Networks

Redundant price feeds

REAX Isolated Market Architecture Diagram

How Minting Works

Synthetic Asset Creation

Users lock collateral and mint a synthetic token that tracks an external price feed. The asset is native to the protocol, priced by oracles, and usable across the rest of the REAX system.

Collateralized Debt Positions: Users deposit collateral and mint synths against it. Your position has to stay above the required C-Ratio or you get liquidated. Standard CDP mechanics, but tuned per market.
Dynamic Debt Adjustment: Your debt isn't fixed. It moves based on your share of the pool's total debt. If other positions in the pool gain value, your debt goes up proportionally, and vice versa.
500+ Assets: We set up support for hundreds of synthetics: crypto (BTC, ETH, XRP), equities (AAPL, GOOGL, MSFT), currencies (EUR, JPY, GBP), and commodities. All tradable on-chain.
Adding New Assets: There's a governance process for listing new synths. It checks oracle availability, market demand, and risk parameters before anything goes live.

500+

Synthetic Assets

Available for minting

Asset Categories

Crypto, Stocks, Forex, Commodities

≥120%

Collateralization Ratio

Varies by market risk

Collateral Deposit Interface

No AMM, No Slippage

Zero-Slippage Trading Engine

REAX does not use liquidity pools for synth swaps. When a user swaps one synth for another, execution happens atomically at the oracle price. The trade size does not move along an AMM curve, so there is no pool slippage or impermanent loss in that path.

Atomic Swaps: One synth burns, another mints, both at exact oracle prices. The swap is a single atomic operation. No routing, no pool depth to worry about.
Oracle-Based Pricing: Every trade executes at the current oracle price. We pull from multiple decentralized feeds and aggregate them so the price is accurate and hard to manipulate.
No Dedicated Liquidity Pools: The whole collateral pool backs every trade. No need to bootstrap liquidity for each pair separately. This means you can trade any synth against any other synth from day one.
Clean Trading UI: We built a trading interface that hides all the complexity underneath. Select your pair, enter your size, execute. That's it.
Dynamic Swap Fees: Fees adjust based on market conditions to keep things stable during high volatility, but execution is still at oracle price with zero slippage.

REAX Trading Interface

Slippage

For all synthetic asset trades

1000+

Trading Pairs

All synthetics are cross-tradable

None

Trade Size Limit

No size-based slippage

Perps, Options, and Structured Products

Leverage and Advanced Trading

We didn't stop at spot synths. REAX has a full suite of advanced trading tools: perps with up to 125x leverage, binary options, and structured products like indices and leveraged tokens. All on-chain, all settling against the same debt pool.

Leverage Trading: Up to 125x leverage on any supported asset. We built a liquidation engine that keeps the system solvent even during fast moves.
Perpetual Contracts: Funding rates balance longs and shorts over time. No expiration dates, continuous exposure. Standard perps mechanics but running entirely on-chain.
Binary Options: On-chain call and put binary options. Useful for hedging or making directional bets with defined risk.
Structured Products: We built frameworks for indices and leveraged tokens so users can get exposure to baskets or amplified moves without managing individual positions.

125x

Maximum Leverage

For perpetual contracts

Call & Put

Options Types

Binary options

Multiple

Structured Products

Indices, leveraged tokens, etc.

REAX Ecosystem of Financial Products

Getting Price Data Right

Oracle Integration

When your entire protocol settles trades at oracle prices, the oracle layer has to be rock solid. We took this seriously and wired up multiple oracle networks with fallback logic, outlier detection, and per-asset update frequencies.

Multi-Oracle Aggregation: We pull from multiple networks and run statistical checks to catch outliers and manipulation attempts before bad data hits the protocol.
DIA Partnership: DIA gave us coverage for a much wider range of assets than we could get from any single oracle provider. Their custom feed infrastructure was key to supporting 500+ synths.
Fallback and Heartbeat Checks: If an oracle goes stale or drops out, the system falls back gracefully. Heartbeat monitoring flags issues before they can affect trades.
Per-Asset Update Frequencies: Volatile assets get more frequent updates. Stable pairs update less often. This keeps gas costs reasonable without sacrificing accuracy where it matters.

Oracle Networks

Including DIA and Pyth

Asset-specific

Price Update Frequency

Based on volatility profile

Diversified

Data Sources

CEX, DEX, and aggregators

REAX Partnership with DIA Oracle

Keeping the Protocol Solvent

Risk Management

A synth protocol that handles real money needs layered risk controls. We built multiple safety mechanisms so the system stays solvent even when markets go sideways.

Dynamic Collateralization Ratios: C-Ratios are set per market and per asset based on historical volatility and liquidity. Riskier assets require more collateral.
Liquidation Engine: When a position drops below the required ratio, external liquidators can close it and collect a reward. This keeps the whole system healthy without relying on the protocol team.
Global Debt Ceilings: Each asset and market pool has a max debt cap. This prevents concentration risk and keeps growth controlled.
Circuit Breakers: If we detect extreme volatility or oracle irregularities, specific protocol functions pause automatically. Better to halt briefly than let bad data cause cascading liquidations.
Health Factor Monitoring: Users can see their position health in real time with clear warnings as they approach liquidation thresholds.

Pool-specific

Liquidation Threshold

Typically 110-115%

10+

Risk Parameters

Per market pool

Multiple

Circuit Breaker Types

Oracle, volatility, volume based

Making DeFi Actually Usable

Frontend and UX

The REAX interface was designed for traders who already understand centralized exchange flows. A user who has used Binance should understand minting, swapping, leverage, positions, and liquidation risk without reading protocol documentation first.

Guided Onboarding: Three steps from wallet connection to first trade. We walk users through the key concepts without dumping a whitepaper on them.
Position Dashboard: One screen shows all your positions, health metrics, PnL, and market conditions. No digging through subpages.
Mobile-First Responsive: The whole app works on mobile. You can monitor and manage positions from your phone without anything breaking.
Contextual Help: Tooltips and mini-guides are baked into the interface so users learn as they go instead of needing external documentation.

Onboarding Steps

From wallet to trading

Multiple

Supported Wallets

Including browser and mobile options

10+

Educational Modules

Integrated into the platform

REAX Main Dashboard Interface

Community-Owned from Day One

Governance and Tokenomics

REAX is meant to be community-owned. Token holders govern the protocol, vote on changes, and share in protocol revenue. The tokenomics are set up to reward long-term participation over short-term speculation.

On-Chain Governance: Token holders can submit proposals and vote on protocol upgrades, parameter changes, and treasury spend. Standard DAO mechanics with delegation support.
Revenue Sharing: Protocol fees flow back to stakers. If REAX makes money, token holders make money. Simple alignment.
Token Distribution: We balanced team and investor allocations with community mining rewards so the token distribution gets broader over time, not more concentrated.
Staking and Lockups: Staking and lockup mechanisms reward people who commit to the protocol long-term and help dampen token price volatility.

Token-based DAO

Governance Model

With delegation support

Stakeholder Aligned

Fee Distribution

Protocol revenue sharing

Multiple

Proposal Types

Technical, financial, governance

How We Built It

Building a synthetic asset protocol means every bug is a potential exploit. We treated security as a first-class concern from day one.

Two-Week Sprints

Agile with short cycles. Ship incremental improvements, test them, move on. Kept the architecture clean as we went.

Heavy Test Coverage

Unit tests, integration tests, and stress tests covering every contract function. We simulated market crashes, oracle failures, and edge cases most people wouldn't think of.

Formal Verification

For the critical paths like liquidation logic, we used formal verification to mathematically prove correctness. Not just "it works in tests" but "it provably works."

Defense in Depth

Multiple security layers: parameter bounds, access controls, emergency shutdown, and timelocks. No single failure can bring down the system.

Independent Audits

Multiple security firms audited the codebase. We fixed every finding and had them verify the remediations.

Public Testnet

Ran an extended public testnet with bug bounties. Community feedback caught things our internal testing missed.

Incremental Rollout

Launched with conservative parameters and core features only. Added more assets and features gradually as the system proved stable in production.

Monitoring and Alerts

Set up real-time monitoring and alerting so we know immediately if something behaves unexpectedly on-chain.

Metrics

Where REAX Stands

REAX gives you permissionless access to 500+ assets that were never available in DeFi before, with better execution than most centralized exchanges. No slippage on any trade size, no impermanent loss for the protocol, and everything runs trustlessly on Mantle. The roadmap has more asset classes, cross-chain deployment, and deeper integration with the broader DeFi ecosystem. We're bringing traditional financial markets on-chain without the trade-offs that every other approach requires.

1M+

Total Value Locked

Target for first quarter

$10M+

Trading Volume

Monthly target

Ongoing

Asset Expansion

New assets added regularly

Industry-Leading

Market Innovation

Zero-slippage synthetic trading