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FAQ

1️⃣ General

Where can I start trading on Tsunami?
​tsunami.so​
Tsunami is currently available by invitation only. You will need an invite NFT to use Tsunami.
How do I secure an invite to start using Tsunami?
​Join the waitlist to gain early access. Put down your Solana wallet address in the #waitlist channel. When an invite is available for you, we will airdrop an NFT to your wallet and notify you in Discord.
The waitlist will be open until we make Tsunami available to the greater public by end of 2022.
What is the relationship between DFlow and Tsunami?
Tsunami is powered by DFlow, a standard for open and fair payment-for-order-flow markets. DFlow enables Tsunami to offer retail traders both zero-fee trading and guaranteed best-execution.

2️⃣ DFlow: Open and Fair Order Flow Markets

What is DFlow? What does it do?
DFlow is the standard for open, provably-fair, and decentralized payment-for-order-flow (PFOF) in crypto. DFlow enables institutional market makers to purchase retail order flow at fair market rates. Likewise, it enables sources of retail order flow like wallets and brokerages to provide guaranteed best execution and deliver real cost savings to their users while earning rebates from market makers.
Why does DFlow exist?
Open and fair PFOF brings significant improvements that are essential for well-functioning digital markets. The DFlow Protocol is carefully designed to ensure retail orders are executed at the best possible prices and protected from front-running risks. At the same time, sources of retail volume can monetize their order flow without sacrificing execution quality or UX for their users. Market makers who purchase order flow on DFlow can also build out new strategies around the execution of retail order flow.
What is retail order flow?
Order flow is unfilled buy and sell orders generated by market participants. Retail order flow is considered non-toxic, as retail trading activity does not present adverse selection risk to market makers. In contrast, institutional traders’ order flow is considered toxic to market makers, as institutional traders often have an information edge that presents risks to market makers who stand on the opposite side of all orders.
What is PFOF?
As discussed above, retail order flow is a useful asset that has inherent value. Sources of retail volume route order flow through DFlow to best-execution market makers, and pass on these benefits to end-users. PFOF refers to market makers paying for order flow.
Why is PFOF an efficient mechanism?
Transparent PFOF brings many significant improvements to retail trading. Firstly, retail traders receive the best prices in addition to price and size improvements on their orders. Secondly, sources of retail order flow, such as wallets and Web3 swapping apps, can monetize their order flow without sacrificing execution quality or UX for their users. Finally, all of this is provable: execution quality, price, and size improvements are measurable and verifiable by anyone.
Why has PFOF been criticized by the public?
Much of the existing criticism refers solely to PFOF in traditional equities markets (e.g. PFOF in options markets is different). Criticisms stem from a lack of execution transparency behind PFOF. What DFlow brings to crypto is open and fair PFOF – a big step away from traditional PFOF in stocks.
How is order flow sold on DFlow?
Market makers participate in auctions and compete to bid on order flow contracts, which give them the right to fill incoming retail order flow.
What are order flow contracts?
Order flow contracts, like traditional futures contracts, grant the purchaser of the contract immediate physical delivery of the underlying order flow. Each contract specifies properties of the order flow (e.g. token pairs, notional sizes) and obligates the buyer to fill the underlying order flow.
How does DFlow ensure market makers fill orders at the best prices?
DFlow uses a decentralized price oracle (currently, Pyth) to mimic the National Best Bid and Offer (NBBO) in equities. DFlow programmatically requires market makers to fill orders at prices at or better than the oracle price.
How does DFlow prevent toxic order flow from entering the system?
DFlow requires that order flow be endorsed by an underwriter, known as a signatory server. Signatory servers only endorse order flow from sources that they have approved. Signatory servers can be run by anyone but initially will be set up by the DFlow team.

3️⃣ Tsunami: Zero-Fee DEX

What is Tsunami?
Tsunami is a zero-fee decentralized exchange (DEX) built on Solana that delivers real cost savings to you through price improvements. On Tsunami, you swap for free with guaranteed best price execution from institutional market makers.
How is Tsunami different from other DEXs?
Swapping tokens using most popular swapping tools comes with hidden costs. Retail traders often pay high swap fees, are exposed to MEV and front-running risks, and suffer from poor price execution. These are all effectively hidden costs that add up over time. On Tsunami, you swap for free, receive guaranteed best-execution (and often price and size improvements), and are protected from predatory frontrunners.
How does Tsunami offer free trading?
We offer free trading by routing Tsunami orders through the DFlow protocol to professional market makers who provide reliable best execution for them.
How does Tsunami guarantee best prices?
Tsunami does not sacrifice price execution for free trading. In fact, institutional market makers who fill Tsunami orders are algorithmically required to fill your orders at the best prices, regardless of size.
What cost savings do I receive?
Experiencing price slippage and MEV attacks / front-running are both significant hidden costs to you in the long-term. On Tsunami, these worries are a thing of the past. And of course, zero fees on Tsunami save you the standard exchange fees that exist on other popular swappers.
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Outline
1️⃣ General
2️⃣ DFlow: Open and Fair Order Flow Markets
3️⃣ Tsunami: Zero-Fee DEX