NABLA Finance Incentivised Testnet Alpha goes live!

AMM landscape

Automated Market Makers (AMM) play a crucial role in the world of DeFi allowing traders to place buy and sell orders on exchanges in the absence of a centralised counterparty. This unlocks numerous web3 application use cases, e.g. automated decentralised trading or complex yield strategies. But the currently existing traditional approaches burden liquidity providers with a set of inherent risks, such as market risks and impermanent loss (IL) due to high volatility on the respective markets and design flaws of the AMMs themselves. This often results in a lack of liquidity (providers), and hence expensive AMM liquidity. Several concepts have been introduced in recent years, attempting to tackle the IL risk by providing single-sided liquidity provisions, and thereby compensating the occurring IL, or through Proactive Market Makers (PMMs); however, current solutions do not solve market risks.

Nabla design & innovation

Nabla innovates on this particular frontline by enabling more conservative liquidity providers a way to provide liquidity without taking on full market risks.

Nabla’s AMM design separates the roles of asset provision vs. certain risk-taking by offering conservative liquidity providers a convenient and easily accessible, low-risk single-sided liquidity provision option via Swap Pools. This ‘outsources’ market risks and other remaining residual risks (e.g. residual IL risk in times of extreme price volatility or black swan events such as oracle failures) almost completely to a second risk profile of liquidity providers (i.e. seasoned DeFi users) represented via an incentivized Backstop Pool. The Backstop Pool guarantees that Swap Pool liquidity providers can withdraw their deposited amount after a certain cool-off period at any time (USDC per default, in edge cases it might be a different token, though).

This design allows to attract deep liquidity at much lower costs, and furthermore significantly increases the capital efficiency due to the single-sided Swap Pools, which don’t require a pairing asset.

For more detailed information on the mechanics visit: https://docs.nabla.fi/

Why we are excited

SMAPE Capital has been supporting Nabla since its earliest days of inception as a pre-seed investor.

Nabla developed a very promising AMM design allowing for extremely low slippage and trading fees and offering different liquidity provision risk profiles. Nabla could become a place ‘to go’ for both bluechip crypto assets, as well as, e.g. stable tokens for different fiat currencies (=> on-chain forex).

Nabla’s approach to AMM could be a unique opportunity to make liquidity provisioning accessible for any risk appetite, not just for seasoned DeFi experts, and thus opening up new sources of liquidity to further advance decentralised finance.

Testnet campaign & $AMBER on-chain points program

Nabla Testnet Alpha went live on Ethereum Sepolia today. This is the first of two testnet deployments planned for this year. Testnet Alpha users are incentivised using $AMBER, a tokenised points system. Over 4 weeks of campaigns up to 2,000,000 $AMBER points are allocated for testnet alpha. More information on the incentivised testnet campaign and $AMBER points program is available at:

https://paragraph.xyz/@nablafi/incentivized-testnet-alpha

https://paragraph.xyz/@nablafi/introducing-amber-tokenized-points-program

The future is multichain

Nabla is taking a multichain approach and will announce the mainnet chain soon. So stay tuned and join their community via https://linktr.ee/nablafi