General Overview

# What is S&F?

Stip & Flip is a perpetual protocol and a decentralized exchange (DEX) that allows users to create and trade synthetic assets on the Ether.

S&F is permissionless, anyone can participate in the protocol by providing liquidity, providing data, trading synthetic assets or create new synthetic assets.

S&F has no central point of failure, each component is driven by incentives and run by the 3 main actors that take part in the protocol. Traders pay a funding rate to liquidity providers to hold a synthetic asset, and data providers are payed swap fees to provide accurate data.

S&F has no liquidation engines. As a trader you cannot be liquidated, the trader position is always either positive or null

As a liquidity provider, the funding rate and swap fees are the main source of income. You are also exposed to the trader PnL (profit and loss).

Once deposited your liquidity are auto-compounded, which means that any gain or loss is reflected in your deposit in real time. Your rewards are automatically added to your deposit.

The name Stip & Flip comes from the 2 kind of synthetics that can be created for one asset price. A Stip is minted following the rule 1 ETC * ASSET_PRICE, and a flip is minted following the rule 1 ETC / ASSET_PRICE.

A Stip will increase in value when the asset price increase, while a Flip will increase in value when the asset price decrease.

In a nutshell a Stip is a long position or a normal synthetic, and a Flip is a short position.