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AmmalgamWhy Oracle-Free Finance is the Future of DeFi
Oracles have long been the connective tissue of decentralized finance. They feed blockchains with off-chain data so smart contracts can function. Asset prices, rates, events - everything trickles into blockchains via oracles. But this crucial role comes with risk. In recent years, we've seen oracles become the source of some of DeFi's most devastating failures, the target of hacks, manipulations and the cause of mass liquidations. The truth is - DeFi’s dependency on oracles is a des...
AmmalgamLiquidity Pools Explained: Why DeFi Runs on Shared Capital
AmmalgamImpermanent Loss: The Silent Cost of Providing Liquidity
Impermanent loss is one of the most misunderstood risks in DeFi. New users hear about “earning yield” by providing liquidity and assume it resembles interest on a savings account. It does not. Automated Market Makers (AMMs) change the structure of your position every time the market moves. If you do not understand that mechanism, you cannot evaluate the risk or the return. Impermanent loss is the difference between what your assets would have been worth if you had simply held them and what th...
AmmalgamWhy Oracle-Free Finance is the Future of DeFi
Oracles have long been the connective tissue of decentralized finance. They feed blockchains with off-chain data so smart contracts can function. Asset prices, rates, events - everything trickles into blockchains via oracles. But this crucial role comes with risk. In recent years, we've seen oracles become the source of some of DeFi's most devastating failures, the target of hacks, manipulations and the cause of mass liquidations. The truth is - DeFi’s dependency on oracles is a des...
AmmalgamLiquidity Pools Explained: Why DeFi Runs on Shared Capital
AmmalgamImpermanent Loss: The Silent Cost of Providing Liquidity
Impermanent loss is one of the most misunderstood risks in DeFi. New users hear about “earning yield” by providing liquidity and assume it resembles interest on a savings account. It does not. Automated Market Makers (AMMs) change the structure of your position every time the market moves. If you do not understand that mechanism, you cannot evaluate the risk or the return. Impermanent loss is the difference between what your assets would have been worth if you had simply held them and what th...
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Ammalgam unleashes more DeFi by combining lending and trading into one protocol. This combination composes yield sources, simultaneously improving capital efficiency and unlocking unlimited strategies for market makers. Permission-less pairwise lending empowers traders to short anything, taking DeFi beyond what has been possible before.
We are excited to announce that Ammalgam closed a $750,000 pre-seed funding round in Q3 2022 and has an experimental demo on testnet. The funding round is led by some of DeFi’s most influential participants and founders including:
Kain Warwick, Synthetix founder Anton, Sergej, & Mikhail, founders of 1Inch Robot Ventures - Robert Leshner, Compound founder & Tarun Chitra, Gauntlet founder Santiago R Santos Bodhi Ventures BootNode Marin Ventures Kevin Zhou Factor Zeal Capital
Special thanks to Kain's 2022 mentorship program, which accelerated our progress.
“The AMM design space is not yet fully explored, Ammalgam is an exciting new project optimizing capital efficiency for LP’s” - Kain Warwick.
LPs can now earn both lending and trading fees on all assets on one protocol while improving capital efficiency and enabling virtually unlimited strategies for quants and degens. Multiple example payout curves are unpacked below.
Ammalgam’s design significantly reduces the costs of Delta Neutral Market Making. Users can modify delta risk by borrowing a portion of assets provided to an AMM. Ammalgam allows debt to be issued directly from the AMM pool, reducing the cost to the spread between supply and borrow rates and relieving borrowers from paying the full rate.
Through Leveraged Market Making, users can generate similar yields and risks to concentrated liquidity.
Long Straddles allow users to create Impermanent Gain by borrowing in units of the invariant, K from the AMM formula X * Y = K. This enables arbitrageurs to borrow liquidity from our protocol and deploy it to other AMM’s where swap rates may be higher. Through this arbitrage, our protocol balances rates with the market and thus acts as a liquidity aggregator.
While Uniswap V3 introduced concentrated liquidity for improved capital efficiency, many passive LPs were unaware of the additional compounded risk of impermanent loss. Ammalgam offers tools for LPs to better understand the risks of their positions. Our charts show the impact of both price changes and the earned or spent fees on a position over time.
Combining lending and trading into one protocol unlocks an unparalleled set of tools for traders and enhanced yields for market makers. Traders can short and long anything without the limitations of allowlists and governance. Market Makers optimize returns getting both swap fees and lending fees. We are proud to offer more DeFi than any other protocol.
"Since ETH Denver 2022, Ammalgam has spent time doing careful research and analysis of constant function market makers and other trading mechanisms. We're excited to see them launch and give traders the flexibility they need in this ever more complex and competitive environment on-chain" Tarun Chitra
The Protocol will launch to Mainnet Soon™. Follow Ammalgam on twitter, join our community in Discord, and visit us online at Ammalgam.xyz.
Ammalgam unleashes more DeFi by combining lending and trading into one protocol. This combination composes yield sources, simultaneously improving capital efficiency and unlocking unlimited strategies for market makers. Permission-less pairwise lending empowers traders to short anything, taking DeFi beyond what has been possible before.
We are excited to announce that Ammalgam closed a $750,000 pre-seed funding round in Q3 2022 and has an experimental demo on testnet. The funding round is led by some of DeFi’s most influential participants and founders including:
Kain Warwick, Synthetix founder Anton, Sergej, & Mikhail, founders of 1Inch Robot Ventures - Robert Leshner, Compound founder & Tarun Chitra, Gauntlet founder Santiago R Santos Bodhi Ventures BootNode Marin Ventures Kevin Zhou Factor Zeal Capital
Special thanks to Kain's 2022 mentorship program, which accelerated our progress.
“The AMM design space is not yet fully explored, Ammalgam is an exciting new project optimizing capital efficiency for LP’s” - Kain Warwick.
LPs can now earn both lending and trading fees on all assets on one protocol while improving capital efficiency and enabling virtually unlimited strategies for quants and degens. Multiple example payout curves are unpacked below.
Ammalgam’s design significantly reduces the costs of Delta Neutral Market Making. Users can modify delta risk by borrowing a portion of assets provided to an AMM. Ammalgam allows debt to be issued directly from the AMM pool, reducing the cost to the spread between supply and borrow rates and relieving borrowers from paying the full rate.
Through Leveraged Market Making, users can generate similar yields and risks to concentrated liquidity.
Long Straddles allow users to create Impermanent Gain by borrowing in units of the invariant, K from the AMM formula X * Y = K. This enables arbitrageurs to borrow liquidity from our protocol and deploy it to other AMM’s where swap rates may be higher. Through this arbitrage, our protocol balances rates with the market and thus acts as a liquidity aggregator.
While Uniswap V3 introduced concentrated liquidity for improved capital efficiency, many passive LPs were unaware of the additional compounded risk of impermanent loss. Ammalgam offers tools for LPs to better understand the risks of their positions. Our charts show the impact of both price changes and the earned or spent fees on a position over time.
Combining lending and trading into one protocol unlocks an unparalleled set of tools for traders and enhanced yields for market makers. Traders can short and long anything without the limitations of allowlists and governance. Market Makers optimize returns getting both swap fees and lending fees. We are proud to offer more DeFi than any other protocol.
"Since ETH Denver 2022, Ammalgam has spent time doing careful research and analysis of constant function market makers and other trading mechanisms. We're excited to see them launch and give traders the flexibility they need in this ever more complex and competitive environment on-chain" Tarun Chitra
The Protocol will launch to Mainnet Soon™. Follow Ammalgam on twitter, join our community in Discord, and visit us online at Ammalgam.xyz.
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