Searching for Alpha: InfinityPools

On-chain spot leverage remains a relatively unsolved challenge in DeFi. Moderate leverage can be supported through spot lending markets, but the level of sophistication in risk management necessary for scalable and capital-efficient margin lending infrastructure has not yet been achieved on-chain in a meaningful way.

InfinityPools aims to address this problem by focusing solely on the risk management engine. The core innovation is using concentrated liquidity positions as borrowable collateral to reduce risks when unwinding leveraged positions. Traditionally, leveraged positions are taken against collateral which is forcibly sold into the market when the positions margin is exhausted.