Pansy AMM
Pansy AMM is an AMM that utilizes a currency basket-style liquidity pool to achieve greater profitability and lower impermanent loss. This is made possible through the implementation of active liquidity control and rebalancing mechanisms.
Project Description
Pansy AMM proposes a new approach to liquidity provision in DeFi with a smart AMM that achieves high returns and zero impermanent loss. Existing liquidity provision suffers from low returns due to liquidity fragmentation and high risk due to impermanent loss. Pansy AMM solves these issues by using demand-based liquidity management and a currency basket pool with a pricing mechanism based on market price rather than coin balances in the pool. This makes impermanent loss zero and provides zero slippage to traders for market price. Pansy AMM incentivizes swaps that improve the pool balance and penalizes swaps that worsen it. Pansy AMM is highly composable with other protocols and will be a new liquidity infrastructure to facilitate the DeFi ecosystem.
How it's Made
Solidity: for writing the smart contract code Truffle: for compiling, testing, and deploying the smart contracts React: for building the front-end user interface Web3.js: for interacting with the Ethereum blockchain from the front-end Infura: for connecting to the Ethereum network
