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Launched final Friday, InfinityPools is a brand new DEX on Base that gives limitless leverage and no liquidations.
How does it work?
To execute leveraged trades, InfinityPool merchants take out loans within the type of concentrated Univ3-style AMM liquidity, versus conventional stablecoin loans for margin buying and selling. That is the core of InfinityPool’s distinctive liquidation mechanism: merchants have the assured choice to promote their borrowed collateral again to the pool at a set worth, irrespective of how a lot market costs fall (equivalent to with a put possibility), limiting their losses to their preliminary deposits. .
For instance, a dealer desires to take a leveraged commerce on ETH, so that they borrow liquidity supposed to guard in opposition to a ten% worth drop. If ETH falls beneath the ten% threshold, they’ll merely return the borrowed ETH to repay the mortgage, and merchants can’t lose greater than their deposit.
InfinityPools at present has two stay swimming pools – sUSDe/USDC and sUSDE/wstETH – with roughly $2 million in TVL on every pool. The previous pool provides ENA rewards, whereas the latter provides LDO rewards.