Introduction 👋
An overview of the GammaSwap Protocol
What is GammaSwap?
GammaSwap is the first onchain perpetual options protocol. It is non synthetic and positions are created by borrowing liquidity from Automated Market Makers (AMMs). This enables GammaSwap to offer leverage on any token without an oracle. GammaSwap itself is not an AMM but rather a set of smart contracts that enable traders to create perpetual option positions utilizing AMM liquidity.
GammaSwap is compatible with any AMM that is a Constant Function Market Maker (CFMMs). Example are DeltaSwap, Uniswap V2, SushiSwap V2, etc.
DeltaSwap, the Feeless Swap DEX
DeltaSwap is an AMM built by the GammaSwap Labs team. It uses the canonical liquidity invariant formula, x*y=k (Uniswap V2). Unlike other DEXs, it charges no swap fees. Instead liquidity providers earn fees from borrowers exclusively.
The purpose of the feeless swap DEX is to reduce the spread charged to spot traders and drive more efficient trading. Additionally, reducing fees will help increase the adoption of DeFi and reduce CEX<>DEX price latency.
The GammaSwap dApp
The GammaSwap dApp is live on Arbitrum and Base. Users can connect their wallets to borrow and provide liquidity. The docs explain how to utilize the platform based on different user personas.
Here is a breakdown of the available pages in the interface:
Trade- the trading interface for perpetual option positions and swaps.
Borrow - Borrow liquidity to get perpetual option exposure.
Swap - Trade spot assets without any swap fees.
Earn - the liquidity provider interface, where LPs can add liquidity to GammaSwap pools.
Pools - Provide liquidity into pools to earn trading fees.
Portfolio - once you have added liquidity or opened an options position, your positions will appear here. There are two tabs "Supplied" to view open LP positions and "Borrowed" to view open loan (option) positions.
Liquidity Providers
Borrowers
Spot Traders
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