🦄The 2sAMM

"There better be Leverage in Heaven" - Mother Teresa

Basically, Uniswap For Degens.

Testnet live at testnet.itos.fi!

Safer, smarter, leveraged Liquidity Provisioning has never been easier. We've taken the best of Uniswap V2 & V3 and upgraded them the latest in financial engineering:

• Clear Data Insights. See the highest earning ticks. Know exactly what your risks are.

• Hedging. Finally a real way to beat IL. No inflationary tokens, no gimmicks, just real financial engineering.

• Safe Leverage. Leverage your LP up to 50x (depending on the pool) without the risk of liquidation. (See Liquidation-Free Leverage for details).

Quickly see how your position changes as prices change. Hedged LP example.

The Composition Graph is the centerpiece and it helps users understand how token balances change when providing liquidity to pools and where their risks are.

• A Basic LP is the same as providing liquidity to any other concentrated and unconcentrated (full-range) constant product pool. So feel free to use our graph to dissect your risks in other AMMs! We don't mind!

• A IL-Hedged LP is a basic LP combined with hedges so the overall performance tracks the performance of a token. This way you can earn yield while also capturing a token's price moves.

• A Real-Hedged LP is a basic LP combined with hedges so that the position's overall value doesn't fall below a certain token amount. This is a way to stay safe while also earning yield.

• Vol-Taking is the opposite of LPing. If you ever feel like the yield is too low for a certain pool, you can take the opposite bet and pay the yield in return for capturing an LP's impermanent loss as your Impermanent Gain.

Features

Two Sources of LP Yield: Trading Fees and Time

Open the basic liquidity positions you're used to.

Use either concentrated or full-range liquidity to earn yield. In addition, earn a bonus Time Premium (Lending APR) on top.

While Trading Fee APRs are only earned when a position is in range, the Lending APR is always earned. Under the hood, a portion of your liquidity is borrowed by Liquidity Takers and deposited into a money market for the extra yield. But don't worry, that portion still earns the full Trading APR if its in range because we charge the Takers that same rate.

Real Yield Hedging - Guaranteeing a floor value.

This is a way to LP while guaranteeing yourself a minimum balance in one token or another.

For example, say you deposit 6000 USDC worth of tokens into a DOGE/USDC pool. If the price of DOGE starts falling, your LP position will lose value. But with Real Yield Hedging, you can set a max loss of 10% meaning our hedge will guarantee your principal is always worth 5400 USDC. When you're in range, you earn your trading fees, and when you're close to your selected floor value you pay a funding rate for the hedge. It's cheapest to select a hedge that won't be utilized too often while still protecting you from market crashes. Thus you're effectively reducing your expected APR, in return for less risk.

IL Hedged LP - Earn LP yields while limiting Impermanent Loss

This is a way to liquidity provisioning while maintaining long-term exposure to the underlying deposited tokens. It mitigates IL risk, preserves your upside potential, and earns yield all at the same time.

IL is short for Impermanent loss and IL happens whenever you liquidity provide, no matter the platform. See Principal Loss for more details.

In the above example, once your impermanent loss reaches 5%, meaning you lost 5% relative to holding the underlying tokens, the hedges kick in and your principal tracks the purple line. If you didn't hedge, your position's value would match the orange line which has more downside exposure and no upside exposure.

Volatility Taking - Bet on Large Price moves with limited downside and high leverage.

This is an easy way for users to access an options-like experience on chain.

Get leveraged exposure to a token's upside, downside, or both-sides by paying a funding rate.

These positions operate like an inverse LP position. Instead of providing liquidity, it borrows liquidity and pays the Swapping APR in return for divergence gains.

Additional Notes

The reason we built this product is because we've noticed on https://revert.finance/ the best performing AMM LPs on blue-chip tokens are wide-ranged concentrated positions (30-50% up and down) and would benefit immensely from 3-5x leverage. The hedges then further reduce volatility. Of course bull and bear markets can change these details. *

* NOT financial advice. Please DYOR and understand any and all risks.