Thursday, 30 March 2023

Matrixport expands centralised and decentralised finance offerings with AMM Farming

5 min read

Matrixport, one of the fastest growing digital assets financial services platforms in Asia has launched the Automated Market Maker (AMM) Farming. The new product enables easy and secure access to quality decentralised finance (DeFi) liquidity pools for active crypto investors seeking more ways to generate yields.

AMMs are autonomous protocols that allow anyone to become a market maker on a decentralised exchange. Fees are earned by depositing two assets represented in the liquidity pool at the same time. The algorithm will always quote a bid or ask price anytime for these two assets. 

Cynthia Wu, head of sales and business development at Matrixport said, “AMM is an amazing innovation of DeFi, as it enables decentralised market making which is a fundamental expression of crypto’s vision and nature.  Matrixport’s AMM Farming pays homage to this decentralised way of market making. The product lowers the entry barrier, enabling a wider base of users to participate in DeFi liquidity farming while earning attractive yields in a secure manner”.

AMM Farming adopts a user-friendly app interface that removes the technical knowledge needed to navigate DeFi protocols, allowing users seamless one-click access to DeFi AMM yield opportunities. 

Yield from the AMM Farming is generated from two sources: 

  • Liquidity Provider (LP) fees: As an LP to the liquidity pool, users earn trading fees from the protocol. Matrixport will collect the trading fee and settle it in both currencies in corresponding weighting on behalf of users. 
  • Token Rewards: Some DeFi projects issue token rewards to LPs. Matrixport will help users automatically sell token rewards (if any) in every period and settle or reinvest to boost earnings. Token rewards are generally settled in USDT or USDC (the currency with the lower market price in the liquidity pool)

Product sale window opens weekly, with a 7-day tenor, while the deposit window opens from 12:00 Friday to 12:00 Tuesday(UTC+8). Existing token pairings include ETH/USDT, ETH/USDC, BTC/USDT and BTC/USDC.

Re-disseminated by The Asian Banker

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