DeltaFi - Next-generation Intelligent AMM
After months in the making, we’re proud to announce DeltaFi, the world’s most efficient and user-friendly intelligent AMM design built for traders, market makers, and liquidity providers.
Imagine DeFi as a mountain, its peak high into the clouds. While interest, development, and adoption are at an all-time high, we’re still near the bottom in terms of innovation and an optimal user experience. There are boulders to scale, ice patches to avoid, and of course, the occasional avalanche. Though the community and projects may be in their infancy, we recognize the endless potential and unstoppable momentum.
At DeltaFi, we’re ready to make the ascent and push decentralized finance to new heights. Our novel design and technologies usher in the next era of decentralized exchanges.
Let’s first break down some of the current issues facing DeFi today and how DeltaFi solves them.
We will dive more into these problems and our solutions in upcoming blog posts or you can read our whitepaper for a more in-depth explanation of our product and vision, downloadable on DeltaFi.ai.
Solving the AMM Trilemma — Price Slippage, Divergent Loss, and an Inefficient Market:
● Traders suffer from price slippage, especially for large trade orders, due to the mechanical nature of the Constant Product Curve. To reduce price slippage, a considerable amount of token capital is required to be deposited into the pool, leading to low capital efficiency.
● Divergent Loss occurs when liquidity providers lose their deposited capital in the long run due to inefficient pricing. For example, in a crypto market with volatile asset prices, the prices governed by the Constant Product Curve can be very different from the asset prices in centralized exchanges like Coinbase. Arbitrageurs attempt to resolve this issue but still fall short, which leads to liquidity loss.
● When professional market makers cannot leverage their in-house market-making solutions, an inefficient market emerges. Compared with these professional market-makers’ tools, the Constant Product Curve is merely a dummy solution that quantitative traders and hackers can easily exploit.
The solutions to these problems rest in our design:
An Intelligent AMM — Our AMM algorithm governs the price with internal and external markets as inputs.
Bounded Liquidity Risk — We’ve created a Volatility Index to mitigate the immense capital risks for liquidity providers. Simply put, an LP can specify their risk tolerance levels when depositing using our bounded liquidity risk solution — the higher the risk tolerance, the higher the fees.
Personalized Pools — for Market Makers
- Bidirectional pricing: One can specify different prices for buy and sell orders.
- Dynamic fees: For different pools, market makers can customize the fee collected. This is especially useful for longtail asset pairs that can be difficult to profit from with standard fee rates.
- Order information: Our API provides order information such as trade amount, price, and direction.
Cross-Chain — With Solana as the liquidity hub in a multi-chain world, our cross-chain exchange uses Wormhole to bridge assets between Solana and other mainstream chains like Ethereum, BSC, and Terra.
DAO Governance — We’re building a DAO contract for community members to vote for liquidity mining rates for different pools, trade farming rates, and to provide developer funds.
The DeFi Innovation Infrastructure — DeltaFi will build a thriving developer community on Solana so that one can freely and easily build on top of DeltaFi.
And that’s not all; by choosing to build DeltaFi on Solana and collaborating with projects on the same network, we are utilizing the lightning-fast, most secure, and innovative technologies out there. Solana’s thriving ecosystem provides the perfect place to build a product worth using.
The team behind DeltaFi:
After several iterations and trips back to the whiteboard, DeltaFi teams’ vision has finally come to life. We consist of world-class blockchain and machine-learning engineers, crypto-native marketers, and designers with a keen eye for the best user experience. We’re expanding rapidly, so check out our open careers on our site if you’re interested in joining us to tackle the next frontier in DeFi.
Learn More:
Download our whitepaper, available now on our website at Deltafi.ai.
Join Discord for community and discussion.
Reach out to us on Telegram or Twitter with questions.
And as always, follow us here on Medium for the most up-to-date information on DeltaFi and where we’re headed!
