CoinFLEX, a leading derivatives exchange and yield platform, has announced the second iteration of their innovative AMM+ (Automated Market Maker) platform—making the yield-earning product more accessible to everyday investors.
AMM+: Leveling up the AMM model on a CeFi platform
AMM+ Statistics
The revamped AMM+ page now offers users a statistical summary they
can easily reference to access relevant information when selecting a
market pair. This includes key figures such as average TVL (total value
locked), volume, and APR across both 24-hour and 7-day time periods.
Tips and Guidance
AMM+ emphasizes an educational user experience, equipping users with
the necessary skills and tools to navigate around both the product and
relevant markets. The ‘Tips and Guidance’ toggle is turned on by default
to provide users with simple explanations for different AMM+ features.
Setting Your Price Range
The live price chart offers users the ability to set their price
range while directly referencing live, real-time prices from the
CoinFLEX platform. For those who choose to use the ‘Capital Boost’
feature, an associated liquidation price can be seen on the chart in the
form of a dotted red line. The more Capital Boost used, the closer the
liquidation price will be to the limits of the chosen price range.
Impermanent Loss Calculator
Calculating impermanent loss (IL) has long been a headache for AMM
users across the DeFi space. The AMM+ platform includes an innovative
built-in IL calculator, so that users can simulate impermanent loss at
specific prices—and the prices at which impermanent loss is
eliminated. Providing this information upfront is key to making informed
decisions when deploying capital through AMM+, and highlights the
company’s commitment to accessibility and ease-of-use.
Yield
Below the IL calculator, users can see a simulated yield on their
particular AMM+ position based on information such as the selected
trading pair, price range, deposit amount, and for those utilizing
leverage—the amount of Capital Boost. This gives traders a chance
to estimate their returns before deploying any capital, and incorporate
this information into their decision-making.
At the Forefront of Crypto Yield 2.0
Crypto yield opportunities are quickly evolving and expanding. Crypto
Yield 2.0 is an indication of the shift from yield opportunities
sourced through centralized intermediaries to those accessed
“direct-from-market” across CeFi and DeFi. These opportunities are
becoming more accessible to the mainstream through improved platform
tools, dApps, and education. CoinFLEX remains at the forefront of this
transition, building out the next generation of Crypto Yield 2.0
opportunities.
What is Crypto Yield 1.0?
- Staking assets through third-party lending platforms and earning fixed or variable interest.
- DeFi yield-farming and (often unsustainable) liquidity incentivization.
- Farming-as-a-service products through clunky CeFi integrations.
What are some issues with Crypto Yield 1.0?
- Higher double- or triple-digit rates of return are
associated with smaller low-cap coins, while on AMM+ these numbers can
be achieved on ‘blue-chip’ coins such as BTC, ETH, or XRP. - DeFi risks such as impermanent loss are more easily
mitigated on AMM+ as impermanent loss only exists in one direction, i.e.
for users who choose a price direction that is “overall increasing” or
“overall decreasing”.
What is Crypto Yield 2.0 about?
- Allowing users to source yield directly from the
crypto futures market versus centralized intermediaries, resulting in
higher yields for end-users. - Accessing transparent, market-based, sustainable yields.
How will AMM+ drive forward Crypto Yield 2.0?
- Generating yield directly from futures market
activity, allowing users to earn continuous yield over the long-term
without relying on arbitrary liquidity incentives that can change at any
time. - Offering higher APRs compared to standard DEXes due
to higher trading volumes on futures orderbooks vs. lower volumes on
blockchain-based spot DEXes. - Enabling users to be more capital-efficient with the use of leverage.
About CoinFLEX
Founded in 2019, CoinFLEX is the Home of Crypto Yield and is
committed to provide passive investors and active traders an accessible
platform to earn and trade crypto. CoinFLEX creates innovative solutions
to bring investors and crypto markets together through intuitive yield
products such as flexUSD, the world’s first interest-earning stablecoin, and AMM+, the most capital-efficient automated market maker in the world.
CoinFLEX is backed by crypto heavyweights, including Roger Ver, Mike
Komaransky, Polychain Capital, and Dragonfly Capital. In 2021, the
platform achieved $9 billion in daily trading volume.
source link : https://news.bitcoin.com/coinflexs-new-amm-and-the-rise-of-crypto-yield-2-0/
