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Welcome to Itos Finance
The Heart of Payoff Derivatives
Welcome to our GitBook!
We hope our docs are informative and exciting, and if you have any questions left unanswered please message us on our Discord!
Our initial launch features Three Products:
Under the hood, all three products share 90% of their code which is why we're building three at the same time. To manage operations, we'll deploy them in this order starting in Jan 2024.
Itos is actually a set of low-level contracts useful for constructing any payoff for any token, derived from AMM Liquidity. This is what allows us to easily build the three products above. They're special cases of an Itos derivative and the ones we found most important and useful.
With Itos, anyone can create any payoff for any token. Once constructed, these derived products are automatically priced with a fair-funding rate, bootstrapped by the AMM, completely vault-free, 100% independent of off-chain components, have no lockups, and are infinitely composable. Itos is the most powerful payoff derivation engine to date!
If you're familiar with structured products, Itos is right up your alley. Besides interest rate derivatives, we've got you completely covered (we're also working on those darn IRDs
). The scope of Itos runs the full gamut from options, convertibles, digitals, principal protection all the way to never-before-seen constructions specific to DeFi.
- 1.Normal CLAMM positions have a negative second derivative. This gives us the financial principal of selling gamma for yield, i.e. concavity.
- 2.A shorted CLAMM LP would thus have a positive second derivative and give us convexity while charging a funding rate. The Itos 2sAMM innovation is to synthetically short CLAMM liquidity by implicitly adhering to one of the two opposing curves.
- 3.The Nashed Money Market lets users specify any first derivative with respect to any token.
- 4.The Itos Position Manager is Universal Cross-Marginer and it can bundle together any combination of those previous positions.
- 5.By bundling, we're creating arbitrary linear combinations of first and second derivatives at every point on the payoff graph thereby approximating any desired payoff curve with arbitrary precision.
So if you want to be really technically precise, Itos can't create a non-differentiable payoff if that's what you really want, but with sufficient liquidity it can get infinitely close to it.