Adaptive liquidity - creating a market for market makers
The Axo protocol enables you to deploy any market making strategy without infrastructure concerns or platform-enforced limitations. For the first time in digital markets’ history, users can independently create market making strategies, which together achieve unparalleled price discovery.Axo incentivizes users to design and deploy capital efficient market making strategies, rewarding liquidity providers proportionally to the efficiency they bring into the market.
Permanently solving impermanent lossBy being able to granularly define trade conditions, impermanent loss becomes a manageable factor. Instead of a forced loss, users incur this condition as inventory risk within a broad market making strategy.Users don’t share the same market making formula and inherit the same risks, as is the case on current DEXs. On Axo, every participant determines their liquidity provisioning strategy, risk appetite and tolerance.The customizability of Axo’s market making strategies enables users to mitigate the factors that cause impermanent loss. When the market moves against a user’s position and crosses their preselected risk threshold, their liquidity is automatically pulled or adjusted. This ensures that liquidity is only provided on a voluntary basis.
Trade agnostic design
Despite Axo’s array of financial products, under the hood they are all programmable swaps. The protocol prioritizes settling transactions in the fairest and most efficient way possible. As long as the desired result is reached, different financial instruments can seamlessly be matched with each other.This design allows liquidity to operate across the market and enables unparalleled market making efficiency.
You only need to supply one side of a liquidity pair in order to act as a market maker. This allows projects to raise funds by selling tokens, and traders to build a position as they converge into the other portion of the pair.
Users can deploy a portfolio of assets combined in a single market making strategy, thereby providing liquidity in novel ways.Multi-asset market making reduces the capital required to efficiently provide liquidity.
Your market making strategies are deployed as programmable swaps, which operate autonomously and adhere to your risk tolerance parameters without requiring supervision.They can adapt to changing market conditions, allowing liquidity to only be deployed on a voluntary basis, risk adjusted, and even in high-volatility environments.
Hyper-efficient asset allocationNo single market making strategy will work efficiently all the time. Axo brings institutional grade market making tooling to the blockchain - strategies such as geometric pricing, mean reversal, stochastic and momentum-based liquidity are all made possible through programmable swaps.Axo can facilitate low slippage, high-volume trades without the need for high TVL. Liquidity is modeled around the true mean and distributed across user-deployed market making strategies. Programmable swaps adapt in real-time to the ever-changing conditions of the market.
Markets made by you
Experience a new era of finance, with true peer-to-peer markets in DeFi.