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Matrix Market Maker

How do you rebalance the assets?

There is no rebalancing. Thanks to the integration of price oracles, we are able to provide increased yields with reduced impermanent loss, competitive prices and without any need to rebalance.

As a consequence, we don’t waste fees in compensating LP’s IL. We use the fees to reward their liquidity. Our stochastic spread guarantees extreme competitiveness and capital protection, no matter the market conditions.

Why is it that this methodology has not gained adoption yet? Has something changed recently that made this strategy more feasible than it was in the past?

Some protocols like DoDo Exchange already use oracles. The main issue with oracles is that they create another problem: inventory risk.

Our main innovation lies in the dynamic spread approach, which enables us to control both impermanent loss and inventory risk.

This approach requires higher gas fees than traditional AMMs and a high frequency of oracle updates.

That is why it is much more effective when deployed on Polygon, a chain characterized by cheaper and faster transactions that also guarantees the highest standard of security. Polygon has the highest frequency of oracle updates among all EVM compatible chains.

How are you going to generate revenues if you prevent arbitrage trading? Arbitrage trading is like 80% of total trading volume?

We are not interested in serving arbitrage traders. Arbitrage trading is toxic volume which essentially extracts value from LPs. That's why we want to focus on bringing deep and cheap liquidity to people who actually want to trade their assets. This ensures that our product is profitable for LPs and that prices are cheap for traders.