1xMM Pools
Staking pools with yields computed based on Futures and Options markets
Each pool is related to one token (e.g., WBTC, ETH). To maximize liquidity, all pools introduce a liquidity matching process where long term liquidity matches short term liquidity. All pools pay a yield based on Futures and Options market prices from Deribit and/or Binance; the yield correspond to the accrued performance of a Put option (if market goes down), or a Call option (if market goes up), withing the fixing period.
Flexible Terms
Multiple deposit durations from 1 day to 3 months, affecting yield computation and minimum holding periods.
Position Types
Choose between Long and Short positions to receive yields depending on price movements.
Natural Leverage
Depending on liquidity offered on each side, access leveraged returns when staking onto the short liquidity side.
Available Deposit Terms
Long Position
Receive the Yield if the underlying Coin value, in USD, has appreciated
Short Position
Receive the Yield if the underlying Coin value, in USD, has depreciated
Yield Computation
Yield is computed as the performance of the related vanilla option premium (i.e. Call premium if Coin price has moved up - Put premium if the Coin price has moved down), from last fixing period to current fixing period, accrued over the fixing period (i.e. performance x FixingPeriod), and with notional adjustment.
Performance means the value of option premium, from last fixing period with current spot, volatility and forward data.
Notional adjustment means that performance is adjusted by the ratio: Total_Notionals_Payer / Total_Notionals_Receiver. For example: if short pays long and if the total notional on the short side is twice the total notional on the long side, long side depositors receive twice the accrued performance. Total notional means the sum of liquidities over all the terms on a given side.
Fixing Periods
The pool fixing period depends on each pool and can be adjusted in time.
Standard Fixing Periods
General rules for fixing period by pool term
Coin | Fixing Period |
|---|---|
WBTC | 5min |
ETH | 5min |
WETH | 5min |
Others | 10min |
Liquidity Surge Adjustments
If liquidity starts to surge in the pools, the fixing period could be decreased to:
Pool Benefits
Comprehensive benefits of our pool system
1
NO INSOLVENCY
Worst case, yields converge to 0
2
FULLY DECENTRALIZED
Can run with limited IT requirements
3
NO IMPERMANENT LOSS
As with other DEXs
4
OBSERVABLE COST OF CARRY
For Crypto assets, with an Index
5
NATURAL LEVERAGE
No competitor currently provides such a rate-like term-structure solution
1xMM Compensation
Since short positions have the benefit of generating intrinsic capital gain if the coin value in USD goes up, then compensating the yield payment, 1xMM Pools can offer 1xMM compensations to users taking the long side.
If the spot price of the coin is decreasing, long depositors would pay yield to the short side but long depositors can be compensated with an amount of 1xMM tokens.
Fee Structure
Low fees are charged through a first one-off payment (the Minimum Fee) and a prorated fee after the minimum fee period.
Fee Schedule
Comprehensive fee structure by term
Term | Fee (Daily) | Fee (Yearly) |
|---|---|---|
1D | 0.35 bp | 1.2775% |
1W | 0.30 bp | 1.0950% |
2W | 0.30 bp | 1.0950% |
3W | 0.25 bp | 0.9125% |
1M | 0.25 bp | 0.9125% |
2M / 3M | 0.20 bp | 0.7300% |
Minimum Fee
The Minimum Fee corresponds to 50% of the Term fee.
Minimum Fee = Term Fee × 50%Prorated Fee Calculation
The prorated fee is charged at the exit of the position.
Prorated_Fee = Fee × Holding_Period - Minimum_FeeFees are designed to be competitive while ensuring the sustainability of the protocol. The prorated fee structure allows for fair pricing based on actual holding periods.
Pool Penalty
For all pools, if a user doesn't remain in the pool for at least
The penalty fee is left onto the pool, for other users to earn.
Create Your Pool
If you wish to create a pool for your token, or if you wish to create a pool and a 1xMM like token contact us.