🧵 Thread

•

We recently held an AMA with @perpprotocol X @lemmaswap and Founder @MLGavaudan. Check out the thread below for a summary of our discussion! 1/12 Credits to: @Tomek_WAGMI twitter.com/perpprotocol/status/1620865543980089344?s=20&t=lThQNIEOvscOfOKGeLdbog

What is LemmaSwap? • Decentralized spot exchange • Built on Perpetual Protocol using its liquidity • Allows for spot trading between different assets while maintaining stability through hedged liquidity 2/12

• Supports Ethereum and Bitcoin as the primary trading assets. • Maintains a stable pool of long and hedged assets as users trade spot and short futures. • Offers unique trading experience with yield from spot trading fees and funding rate arbitrage. 3/12

Lemma Swap: A Unique Trading Experience • When the user trades Ethereum for Bitcoin, he places Ethereum into a stablecoin. • Lemma Swap increases its short position in Ethereum & decreases its short position in Bitcoin, allowing for a spot swap while maintaining stability 4/12

Revolutionary trading with Perpetual and Lemma Swap. • Perpetual and spot prices usually differ, leading to positive funding rates when Perpetual is below spot. • The funding rate incentivizes longs, creating more LPs and benefiting them. 5/12

• The unique trading experience allows for price discovery and opportunities for price arbitrage by integrating with DEX aggregators. • Minimizing funding rates is a goal, with spot trades adjusting the system to maintain the best funding rates for LPs. 6/12

An Introduction to Perpetual Protocol: • A DEX that offers on-chain perpetual swaps without expiry. • Virtual AMM model with ETH collateral to increase leverage. • 17 markets denominated in USD on Optimism. 7/12

• Anyone can provide liquidity in Perpetual Protocol & earn fees and rewards • Built on Uniswap v3, open-source for development & integration. • Deposit collateral for liquidity, leverage up to 10x & add liquidity to specific markets. 8/12

The Liquidity & Flexibility of Lemma • Lemma reroutes orders to 1inch or Matcha for the best prices, always giving traders access to the best liquidity. • Operates like a lending protocol, with excess TVL leading to diminishing returns instead of losses. 9/12

Lemma's Approach to Partnership and TVL Growth • Lemma is on the hunt for new partnerships to increase its Total Value Locked. • TVL results in diminishing returns rather than losses, giving the platform confidence in its ability to boost TVL. 10/12

Understanding Lemma's USDL Stablecoin • USDL a unique stablecoin backed by long spot & short futures positions, ensuring stability in USD terms. • USDL can be backed by any cryptocurrency, if LemmaSwap can short its futures on a DEX. 11/12

• By combining long spot and short futures positions, USDL offers a stable and secure means of storing value. Learn more at docs.lemma.finance/concepts-overview/usdl END 12/12