Production basis, a protocol developed by Decentralized Financing (DEFI) platform curve financing, mitigates the impermanent losses of tokenized Bitcoin (BTC) and ether (etherethCurve founder Michael Egorov said liquidity providers (LPS), while also creating a market-based approach to inflation and emissions.
Unparalleled cryptocurrency losses This happens when the price of assets stored in liquidity pools falls or deviates to make users less money than simply holding cryptocurrency without engaging in liquidity supply.
Dr. Egorov tells Cointelegraph when Funds stored in liquidity pools It is proportional to the square root of the Bitcoin price, which causes impermanent losses. The founder of Curve Finance said:
“The loss of impermanence occurs due to this dependence of square roots. So we really want to get rid of square roots. How do we get rid of square roots? The mathematical best way to eliminate square roots is square.”
The earnings base is through compound leverage, which always maintains over 200% position by supplementing the borrowed CRVUSD position, which is Dollar-Pegggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggggghate stablecoin for Defi Platform.
This completely doubles the price of the post, Egorov said, completely eliminating the square root problem of the impermanent loss core.
The impermanent losses have plagued liquidity providers for years and drove potential LPs into the game.
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Forked yield choices help set inflation and reduce token emissions
Users can choose to be priced in tokenized bitcoin or production base tokens, which yield is to set inflation rate and Control token emissionsThe founder of Curve said.
“In different market conditions, you need to do different things,” he added. Egorov told Cointelegraph, Speculative bull marketmany users may choose to hold and store YB tokens for price appreciation, so that the actual rate of return can be included in the platform.
On the other hand, in The lasting bear marketusers may choose to play a safe role and generate Bitcoin in the speculative market phase, balances the inflation of YB tokens and provides the “best” value for YB tokens.
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