GammaSwap Docs
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Frequently Asked Questions

What is GammaSwap?

GammaSwap is a protocol for trading volatility through Automated Market Makers, particularly CFMMs.
  • Liquidity Providers earn an equal or higher yield than the underlying AMM. This is because they earn the swap fees + additional borrow fees from the traders. The LP fee revenue should scale with Impermanent Loss risk.
  • Borrowers can get perpetual volatility exposure on any token, oracle free. This could be used to hedge risk or speculate on any asset as soon as a pool on a DEX is created. GammaSwap Perpetuals also have unique properties like no liquidation from price movement and exponential returns (leverage is constantly increasing as prices move).

How do I use GammaSwap?

The GammaSwap Protocol has launched its dApp on Arbitrum. You can navigate to to provide liquidity and trade volatility perpetuals.
You will need a self-custodial wallet and ETH for gas in order to use the dApp. We have also prepared guides for Liquidity Providers and Perpetual Traders.

Wen Token?

Our token will launch a few months after our Mainnet launch!

What happens when I provide liquidity in GammaSwap?

When you provide liquidity in GammaSwap, the smart contract will deposit your liquidity into the underlying AMM. It will hold on to those LP tokens in the smart contract and issues GSLP ERC-20 tokens which represents your LP token position in the underlying AMM. GammaSwap locks the underlying LP tokens in the smart contract, redeemable when the Liquidity Provider decides to remove liquidity from GammaSwap. This allows the LP token to be easily burned and minted as borrow positions are opened, closed and liquidated.

What happens when I open a Volatility Perpetual Trade?

When you open a Volatility Perpetual position, the smart contract burns the underlying LP tokens based on your notional position in Liquidity Invariant units. Your notional position is determined by the LTV you choose and your initial deposit. GammaSwap will rebalance the underlying reserve tokens to the more volatile token for a Long Position and to the more stable token for the Short Position. Regardless, it holds the reserve tokens burned from the LP position in the smart contract. The GammaSwap Protocol issues an ERC-721 NFT token to the trader representing their position. If there is volatility, the reserve tokens can be minted for more LP tokens when the position is closed. This is how the trader achieves Impermanent Gain.