âWhy LayerFlow
Why Choose Us, Why we are different?
Last updated
Why Choose Us, Why we are different?
Last updated
Impermanent loss, poor APY for liquidity providers, and excessive slippage and price effect for traders have long plagued the DeFi ecosystem. LayerFlow presents a novel technique for addressing these issues:
New pool architecture: LayerFlow's pool design is unique in that it offers single-sided liquidity provisioning, numerous assets per pool, and adjustable asset weightings. The Binance Smart Chain simulations show that this structure is less prone to temporary loss.
Smart liquidity routing (SLR): The SLR function of LayerFlow collects liquidity in SLR pools and routes it to numerous pools where it may be used most efficiently. The user experience for liquidity providers is simplified since they simply need to deposit a single token to offer liquidity to various pools. Through proactive liquidity management and auto-rebalancing, this technique decreases temporary loss risks while increasing APY.
Smart order execution: Orders with a price impact of more than 0.2% should be separated and executed as fractional orders. These fractional orders provide our smart liquidity routing and smart liquidity arbitrage features enough time to set the proper prices following each trade.
Margin liquidity: LayerFlow uses margin liquidity by leveraging money markets, which is a more capital-efficient way than standard AMMs such as Pancakeswap V2. This strategy gives liquidity providers an extra APY increase.
In essence, LayerFlow has created the first DeFi ecosystem that uses protocol-managed liquidity to deliver frictionless experiences for both traders and liquidity providers. This novel solution overcomes the fundamental challenges that typical DEX users confront, paving the path for a more efficient and user-friendly DeFi experience.
