Zug, Switzerland, June 17, 2021,
Impossible Finance, a full-featured DeFi incubator, launch pad, and trading platform, unveiled its V2 decentralized exchange design, delivering the lowest price slippage and maximum use of capital.
Thanks to an optimized mathematical model, the liquidity providers of Impossible Finance’s swap benefit from several additional advantages. This includes reduced swap fees and better passive portfolio management thanks to the protocol’s ability to accurately manage risk / return based on market conditions.
1. Better capital efficiency
For swap users, the V2 design introduced new features and optimizations, including very competitive slippage rates and swap fees, paving the way for exponential growth in market automation adoption.
To this end, Impossible Finance uses a new binding curve that we call “xybk invariant”, while b = boost, a multiplier that can be adjusted while the protocol is running. This allows pools to provide higher liquidity than other pools with a larger Total Locked-In Value (TVL).
Another feature offered by the new exchange is called “asymmetric tuning”. This addresses one of the key assumptions in building a stable and personalized MA – the ability to provide different capital efficiencies for each side of the invariant curve.
The simplest way to visualize this is that centralized order books have asymmetric depth charts, so why should AMMs be a perfect dish?
The asymmetric setting is designed to provide an ideal quotation between stable coin exchanges under the AMM mechanism. This is extremely useful for stable coins with a solid economy on one side of the peg (like algorithmic or Tether stable coins), as the stable coin should generally stay close to the value of a dollar.
To find an ideal formula, we could choose to provide 1000 times capital efficiency when the peg breaks down and 50 times the capital efficiency when the peg breaks up. Therefore, the asymmetric setting adapts the most optimal balance between reward and impermanent loss for LPs.
This functionality is provided by using two piecewise continuous xybk invariant curves joined in the middle, token0Balance = token1Balance = sqrtK:
2. Better gas efficiency
Even with these revolutionary design improvements, the transaction costs on Impossible Finance v2 are actually affordable for most users.
To put our improvements in perspective, the implementation of the xybk invariant provides swaps as efficient as curve.finance + based swaps cheaper than uniswap v3 based swaps.
Overall, these features make Impossible Finance v2 the most flexible and efficient AMM ever for liquidity providers and traders. LPs can provide liquidity with up to 4000x capital efficiency, earning higher returns on their capital.
It is difficult to make precise comparisons of capital efficiency with uniswap v3 because Uniswap LPs can choose their own capital efficiencies by choosing the LP within a certain price range. However, our more passive and easy to use design can achieve high capital efficiency with high boost factors.
Capital efficiency paves the way for low-slip trade execution that can outperform both centralized exchanges and stablecoin-driven MAs.
We are delighted to launch our exchange on June 17 at 9 p.m. SGT with:
• A yield farm for LPs for the IF-BUSD and IF-WBNB pools will begin on Friday June 18 at 9:00 PM SGT.
Impossible Finance now serves as a critical infrastructure for decentralized finance, enabling developers, traders and liquidity providers to participate in a secure and robust DeFi marketplace.
Recent milestones follow Impossible Finance’s new capital injection led by a host of leading institutional and angel investors. Earlier this month, the company raised $ 7 million via a seed funding round with the participation of over 125 notable investors, including True Ventures, CMS Holdings, Alameda Research and Hashed.
The new funding will help Impossible Finance build a multi-chain ecosystem to promote the growth of DeFi liquidity and composability. From Binance Smart Chain, Impossible Finance plans to move to multi-chain by expanding into Ethereum and Polygon, with more deployments planned on future L2 solutions and other platforms.
About Impossible Finance
Impossible Finances is a multi-chain incubator, launch pad and exchange platform. Built by DeFi veterans from Binance and other large fintech companies, Impossible offers a robust product-driven ecosystem that supports and launches top blockchain projects to targeted user audiences.
Impossible also offers an AMM liquidity protocol which acts as the backbone of the ecosystem which includes a fully decentralized incubator and launch pad for new projects in DeFi.
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