Most liquidity pools suffer from impermanent loss — the problem where your position ends up worth less than just holding the tokens. Our approach solves this by restructuring how liquidity is managed. Instead of your position drifting below the asset’s value, it tracks the asset price directly — and on top of that, you still earn trading fees from the pool.

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Key Idea

  • A position is created that combines your deposit with borrowed funds.
  • This structure keeps the position balanced so that it grows in line with the asset’s price.
  • You earn fees from trades happening in the pool, just like a normal LP.

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Why This Eliminates Impermanent Loss

In regular pools, the price of liquidity follows a curve that always underperforms the asset itself. Here, the system keeps exposure “amplified” so the position behaves like simply holding the asset. Mathematically: V∗∝(Vc)LV_* \propto (V_c)^L
  • V∗V_* = value of the position
  • VcV_c = collateral value
  • LL = leverage factor
For example, when L=2L = 2, the position tracks the asset price almost exactly — while still earning pool fees.

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Returns (Simplified)

The expected return can be approximated as: APR≈2rpool−(rborrow+rloss)APR \approx 2r_{pool} - (r_{borrow} + r_{loss})
  • rpoolr_{pool} = pool yield
  • rborrowr_{borrow} = borrowing cost
  • rlossr_{loss} = small cost from rebalancing
As long as the pool’s yield is strong enough, the position produces positive returns.

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For the Normies

  • Your deposit behaves like holding the asset directly.
  • You earn additional yield from pool trading fees.
  • The system automatically rebalances so you don’t need to manage it.