Join us for an exciting adventure as we reveal more about the extraordinary world of Hypersea. We’re thrilled to announce that our Whitepaper 1.0 is live and available for exploration. Get an exclusive preview of our protocol’s remarkable features and functionalities, setting the stage for an unforgettable journey.
WHITEPAPER STRUCTURE
Our Whitepaper consists of 4 parts and Annex:
1.Introduction
- On Equitable Access to Exposure
- Problem Overview and Previous Work
- Our Contribution
2.Hypersea: Automated Market-Maker With Autonomous Liquidity Concentration
- Vision and General Architecture
- Correspondence Between Liquidity and Trading Curves
- Trading Function: CES Curves
- Distribution-Optimized Liquidity Concentration
- Conservation of Arbitrage Momentum
- Autonomous Decision Making
3.HYPS Token. The Superfluid Protocol Treasury
- Hypersea Governance
- Protocol-Active Treasury and Protocol LP
- Continuous Token Offering
- Token Distribution & Allocation
4.Conclusion. Markets of the Future
Now, let’s dig a bit deeper.
Evolution of AMMs
Before automated market makers (AMMs) were introduced, it took a lot of work for people to earn money by providing liquidity. Only specialized parties with a lot of time and money could do it. These parties would either provide liquidity themselves or entrust their capital to someone else, which came with risks like counterparty risk and high fees.
AMMs changed all that. They allowed anyone to provide liquidity by becoming a passive liquidity provider (LP). LPs would deposit their capital into a liquidity pool, which would then be used to facilitate trades on a decentralized exchange (DEX). In exchange for providing liquidity, LPs would earn fees from the trades that took place in the pool.
Since 2017, AMM designs have continued to evolve. The latest research in this area focuses on capital efficiency, which is the question of how to set up liquidity provision in a way that offers the best market for the same inventory.
Introducing Hypersea V1
Hypersea is a novel AMM protocol that offers the next step in the evolution of AMMs: automated dynamic liquidity concentration. Hypersea is a trustless, decentralized, noncustodial protocol that dynamically adjusts liquidity concentration based on the performance of observed markets. Hypersea factors in levels of uncertainty, potential oracle failures, and issues with specific external markets when adjusting liquidity concentration.
Hypersea combines the best properties of modern AMM designs. It allows for the set-and-forget provision of concentrated liquidity, is depeg-resistant, and is IL-free. To build Hypersea, the developers had to develop a whole new class of mathematical language for AMMs and produce several gadgets that supported the design.
Automated market makers (AMMs) are a popular way to provide liquidity on decentralized exchanges (DEXes). However, AMMs suffer from two main problems: impermanent loss and capital inefficiency.
- Impermanent loss occurs when the price of the assets in an AMM pool changes relative to the price at which the liquidity was provided. This can cause LPs to lose money, even if the overall value of the pool stays the same.
- Capital inefficiency occurs because AMMs typically distribute liquidity evenly across the entire price range of an asset pair. This means that most of the liquidity is concentrated in areas where it is not needed, and there is little liquidity available in areas where it is needed most.
Hypersea’s Solutions
- Reduced impermanent loss for LPs: Hypersea uses a novel mathematical apparatus to deform its trading curve in response to volatility, uncertainty, and arbitrary price movements. This allows Hypersea to concentrate liquidity at the price ranges where it is needed most, while also reducing impermanent loss for LPs.
- Improved capital efficiency: Hypersea’s novel mathematical apparatus allows it to concentrate liquidity at the price ranges where it is needed most. This means that there is less liquidity wasted in areas where it is not required, which improves capital efficiency.
- Optimization of slippage for traders: Traders can trade with less slippage, improving the user experience.
For a deeper understanding, explore the content of the stated topics/sub-topics and a broader description of the overview by accessing the whitepaper through the link provided below. For any inquiries, feel free to reach out to our team.
Also, prepare for the imminent launch of our revolutionary trading platform, where users from all corners of the crypto community can embark on an exhilarating and transformative trading journey. Get ready to embrace the future with Hypersea!
HYPERSEA DEX LINKS
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