Deepwaters: DeFi created Equally

What are they doing?

Deepwaters is building a protocol that solves some of the challenges faced by AMMs, a key component in the DeFi Ecosystem. While AMMs accelerated the rate of DeFi innovation, a few issues have made them inferior to traditional products and have led to multiple exploits. These issues include slippage, MEV (front-running and sandwiching transactions), oracle manipulation, and more. Read about these issues further here. The Deepwaters protocol is built with a hybrid architecture with three key features designed to level the playing field for all:

  1. Consensus-secured fair price and fair execution for traders
  2. Modified liquidity provider positions, acting as underwriters/insurers instead of primary counterparties for capital preservation
  3. Over-collateralized Exposure Tokens with zero-cost rebalancing
Visualization of a constant product market maker
Typical AMM structure
Hypothetical ET distribution
Overview of the Deepwaters Architecture
Different features offered by the Asset manager

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Glen Rose

Glen Rose

Investment analyst at Serafund. @glenr0se on Twitter.