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Portfolio Asset Types

A description of every asset type available on Itos!

Overview

Itos supports an ever expanding set of asset types so users can easily manage portfolios, cross-margin for better capital efficiency, and properly hedge tail-risks.
Every position opened in Itos is an asset and some assets are always worth a positive amount of tokens. Those are called credit positions while assets which can have negative balances are called debt positions. Debt positions are special because they require a maintenance margin, meaning the value of all your assets (the collateral) has to exceed your debt balance by a certain amount to remain open. Think of it like a money market, where your deposited token values has to exceed your borrowed token values by a buffer. More details on collateralizing can be found in the Collateral Requirements page.
Here we show the currently supported assets along with their detailed explanations below.

Summary

Name
Description
Type
Example
PocketBook Holdings
A single token holding.
Credit
1 ETH
Taker (AMT)
Convexity Primitive
Debit
1M ETH/USDC TakerCall from 1300-1400.
Internal Maker (LP)
Liquidity Provisioning on the Itos AMM
Credit
4ETH, 5000 USDC supplied to 1500-1600 ETH/USDC
Hedged Liquidity Provision (HLP)
Internal LP + Takers
Debit
1500-1600 ETH/USDC LP w/ ~1400 and ~1700 Takers
Imported Maker (LP)
An LP position from another protocol deposited into the PM.
Credit
1400-1600 ETH/USDC Uniswap V3
External Hedges
Takers opened to hedge an LP on another platform.
Debit
1400 and 1700 ETH/USDC Takers.
Imported HLP
Imported LP + Takers
Debit
1400 and 1700 ETH/USDC Takers with a 1500-1600 UniV3 position.

Detailed Explanations

PocketBook Holdings
A simple deposit of a single token. This is useful as collateral for debt positions and is where liquidation refunds are deposited. They don't do any thing fancy which also means they carry no risk.
Takers (AMTs)
This is the Itos Convexity Primitive which has an options-like payoff. More details are found in the Automated Market Taking page.
In short, users pay a perpetual funding rate to get leveraged, oracle-free exposure that pays like either a call option (TakerCall) or like a put option (TakerPut).
Under the hood, users are depositing into an automated trading strategy which always momentum trades with every swap.
Makers [Internal, Imported, External]
A Maker is our shorthand for an Automated Market Maker (AMM), also known as a Liquidity Provider. Liquidity providing is also a deposit into an automated trading strategy where the smart contract always trades against every swap. It is inherently betting on price reversion and collecting fees along the way.
Liquidity providers choose a range of prices to deposit assets into for traders to trade against. The automated strategy uses their deposit to trade against swaps and collect fees the trade price is within their range. The downside is that if the price moves away from what it was at deposit, then the deposited assets becomes less valuable. This is a simplified description of Impermanent Loss (IL). IL is unavoidable and all AMMs experience IL. Thus Market Making is a balance between earning fees and IL.
On Itos, users can mitigate IL by hedging with Takers. See the HLP section for more details. How that process occurs looks different for each of the three types of Makers.
  • Internal: These Makers are opened on the Itos 2sAMM. They earn trading fees, a time premium, act as collateral, and collect any season rewards.
  • Imported: These Makers are opened on another AMM protocol, and then are deposited into the Itos PM as collateral. They still earn their trading fees but do not collect any Itos rewards. Depending on how risky the external protocol is, Itos may charge a tax on the position which the Itos PM uses to hedge the contract risk of that protocol thus protecting all users.
  • External: These Makers are also opened on an external AMM but are not imported into the Itos PM. They cannot act as collateral and are technically not part of the Itos ecosystem. However, our mission is to give risk management to everyone so we still visualize the position for users so they can hedge those risks.
The Liquidity Provisioning page describes how Itos boosts fee earnings for Makers to help tip the scales in their favor.
Hedged Liquidity Provision (HLPs) [Internal, Imported]
HLPs is an easy way to liquidity provide while hedging tail risk. It combines a Maker position with two Takers on either side of the Maker's price range. The Takers appreciate in value when the Maker depreciates thus cancelling out the IL. The aggressiveness of the Takers is fully customizable to the payoff the user desires.

Coming Soon

Name
Description
Type
Example
Lend
Lend a blue-chip token
Credit
Lend 1 ETH
Tail Lend
Lend a long-tailed token
Debt
Lend 100 PEPE
Borrow
Borrow any token
Debt
Borrow 10 PEPE
Perfect Borrow
Lend and borrow at any utilization
Debt
Lend 100 USDC and borrow 99 USDC of PEPE