Strips Finance
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Automated Market Maker
AMM
Our exchange markets center around a pooled liquidity automated-market-maker. A few key features of the Strips AMM:
- 1.Strips Exchange is 100% AMM based
- 2.The market price is purely determined by market supply and demand
- 3.Liquidity providers can provide liquidity in the AMM to receive fees and act as a market maker
The Strips AMM uses an innovative calculation to fairly reflect prices based on the market imbalance present in the market. Using a modified ratio of the total outstanding long positions to outstanding short positions, the market prices on Strips reflect the AMM's capacity to quote the current market fixed rate to the trader.
In order to ensure the robustness of our markets, and reduce market manipulation, the position size of each new trade must be smaller than 10% of the total AMM liquidity.
Staking in the AMM
By staking in the AMM, you will receive 75% of the trading fees for the market, and any trading profits from the AMM. Backtests show that our AMM generates 22% APY with very low risk. Our simulations show the AMM has a median Sharpe ratio of 5.64 and Sortino ratio of 55.
Getting Started
Step 1
Click on Liquidity. Then click on ADD LIQUIDITY.
Step 2
Select the market you would like to stake
Step 3
Enter the amount of liquidity you would like to provide
Step 4
Confirm the transaction in your wallet
Last modified 4mo ago
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