Leading derivatives exchange and yield platform CoinFLEX reveals its new interface for its Automated Market Maker - AMM+, designed to make its yield-earning product more intuitive to the everyday investor.
At the Forefront of Crypto Yield 2.0
The opportunities to earn yield in the crypto space are rapidly evolving and expanding. Crypto Yield 2.0 is an indication of the shift from yield opportunities sourced through centralized intermediaries and subsidized DeFi platforms to those sourced “direct-from-market” in CeFi and DeFi. Mainstream access to these opportunities are growing quickly through improved platform tools, dApps, and education. CoinFLEX is pioneering this transition by building and developing the next iteration of Crypto Yield 2.0 opportunities.
What is Crypto Yield 1.0?
- Staking assets through third-party lending platforms to earn interest.
- DeFi yield-farming and (often unsustainable) liquidity incentivization.
- Farming-as-a-service products through clunky CeFi integrations.
What are some issues with Crypto Yield 1.0?
- Capital efficiency is low as staking and lending activity require users to lock up a large amount of assets in order to earn a higher yield.
- Higher double- or triple-digit rates of return are associated with smaller low-cap coins, while on AMM+ these numbers can be achieved on ‘blue-chip’ coins such as BTC, ETH, or XRP.
- Risks associated with DeFi, such as impermanent loss (IL) are more easily mitigated on AMM+, as IL can occur only when users choose the “overall increasing” or “overall decreasing” options for their position.
What is Crypto Yield 2.0 about?
- Evolution of existing crypto yield opportunities across CeFi and DeFi.
- Users can source yield directly from futures markets rather than centralized intermediaries, creating higher yield for end-users.
- Accessing transparent, market-based, sustainable yields.
- Earning multiple sources of income.
How will AMM+ drive forward Crypto Yield 2.0?
- AMM+ is CoinFLEX's Automated Market Maker that innovates on the existing DeFi primitive, but built for the futures markets.
- Enables users to be more capital-efficient with the use of leverage.
- Offers higher APRs compared to standard DEXes due to higher trading volumes on futures orderbooks compared to lower volumes on blockchain-based spot DEXes.
- Yield generated directly from market activity allows users to earn yield perpetually without relying on arbitrary liquidity incentives that can change at any time.
AMM+: Leveling up the AMM model on a CeFi platform
The revamped AMM+ page now offers users a statistical summary they can easily reference to access relevant information when selecting a market pair. This includes key figures such as average TVL (total value locked), volume, and APR across both 24-hour and 7-day time periods.
Tips and Guidance
AMM+ prioritizes an educational experience for its users by equipping them with all the tools and information necessary to help them create a position. The ‘Tips and Guidance’ toggle is automatically turned on, which provides users with a basic description of different AMM+ features.
Setting Your Price Range
CoinFLEX has provided a live price chart to their users, which also allows users to set their price ranges while directly referencing live, real-time prices from CoinFLEX’s platform. The chart includes a liquidation price, for users who choose ‘Capital Boost’ and can be identified on the chart by a red, dashed line. The more Capital Boost used, the closer the liquidation price will be to the limits of the chosen price range.
Impermanent Loss Calculator
Calculating impermanent loss (IL) is a cumbersome process for AMM users across the DeFi space. The AMM+ platform includes an innovative built-in IL calculator, so that users can simulate impermanent loss at specific prices—and the prices at which impermanent loss is eliminated. Providing this information is crucial for users to help them make informed decisions for when they deploy their capital in AMM+. It also outlines CoinFLEX’s commitment to making crypto products easy and intuitive for users.
Underneath the I