Overview

Reduce the risk of Impermanent Loss with DefiPlaza's CALM algorithm.

DefiPlaza on Radix is a DEX specifically designed to reduce the risk of Impermanent Loss and help make DeFi sustainably profitable.

Impermanent Loss is a huge problem for LPs. In the first six months of Uniswap V3, LPs lost a staggering $60M because while $200M in fees was generated, over $260M of IL occurred.

While most DEXes try to counter this problem by increasing trade volume by adding liquidity concentration and decreasing fees, we learned that to optimize LPs' profitability; we must focus on decreasing Impermanent Loss.

CALM reduces the risk of Impermanent Loss by treating trades that increase IL differently from trades that decrease IL. To do so, CALM keeps a record of each pair's IL and uses two distinct pricing functions, picking trade quality over trade quantity and favoring LP profitability over trader profitability.

How to use DefiPlaza on Radix

Our co-founder Timan walks you through DefiPlaza on Radix ans shows you how to swap tokens, add liquidity and how to create a new pair for a new token in this short video: