Voltz Partners With Mellow Protocol To Launch Optimizer Vault
Voltz, which just topped $120 million in total trading volume, announced in a press release the development of a liquidity provider (LP) optimizer vault in collaboration with Mellow Protocol, allowing users to supply liquidity passively.
Liquidity suppliers just need to deposit an asset in the optimization vault. After that, the vault optimizes the leverage by picking tick ranges and rebalancing liquidity into new ranges as the price changes.
On Voltz, liquidity providers will not suffer impermanent loss, which occurs when the price of assets locked up in a liquidity pool changes after the deposit. This is because fixed and variable interest rates are calculated in the same underlying asset in a Voltz pool.
Until today, however, liquidity providers had to manage margin, leverage, and tick ranges actively.
To address this issue, Mellow Protocol, an automated DeFi Approach builder, has developed its own liquidity provider optimizer strategy. The liquidity providers are not permitted to withdraw funds until the pool period expires.
Nick S, core contributor of Mellow Protocol, said:
“Voltz Protocol launching the LP Optimizer Vault with Mellow Protocol eliminates barriers for traders while mitigating risks in a simplified process. The goal of Mellow is to build a robust ecosystem of tools for eliminating market inefficiencies while generating positive results for users. We believe LP optimization is pushing the boundaries of what was possible in TradFi and we’re grateful to be working with the Voltz Protocol to advance the use case.”
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