TVL > 100K
What is Impermax (IMX)?
Impermax (IMX) is a DeFi crypto lending platform that enables Uniswap liquidity providers to use their AMM LP tokens to get permissionless collateralized loans. It allows everyone to engage in crypto borrowing and lending activities in isolated lending pools, while eliminating a risk of impermanent loss. Impermanent loss is a change of value of the asset compared to when it was deposited to the pool. Oriented on the participants of various blockchain systems, including Ethereum, Polygon, Arbitrum, Moonriver to name a few, Impermax facilitates what is known as Indirect Liquidity Providing (ILP). The ILP feature carries out the supply of tokens for lending to yield farmers. Borrowers use the funds to earn higher returns on decentralized exchanges (DEXs) and then share a portion of their rewards with indirect liquidity providers. Each lending pool on Impermax is presented by a pair of two tokens of a particular DEX. Lenders can send assets to any lending pool to gain passive profits with no impermanent losses. Borrowers can transfer their LP tokens to the lending pool in order to borrow assets of the liquidity pair. This lets borrowers use their LP tokens and earn even more LP tokens, allowing for leveraged yield farming and increased LP rewards. The network is fueled by the IMX Token that is a governance token granting IMX holders a right to influence the further evolution of the Impermax project as well as control and manage revenues of this DeFi lending platform that is generated through interest and transaction fees. The work of Impermax (IMX) can be described as the following: To become a liquidity provider (LP), a user needs to deposit crypto tokens to a pool to maintain the assets’ security. Upon doing so, each LP receives tokens that prove the person’s contribution to the pool. The platform utilizes these tokens as collateral for giving out loans, which in turn must be reinvested into the liquidity pair.
Who are the founders of Impermax (IMX)?
The project was founded by Simone Rigolon who previously worked on numerous blockchain projects. He has nearly a decade of experience in the development of multiple decentralized platforms and DeFi solutions.
What makes Impermax (IMX) unique?
One of the platform’s most outstanding features is leveraged yield farming. It enables borrowers to get loans to leverage (multiply) their positions in a farm by providing their existing AMM LP tokens as collateral. As a result, borrowers can gain profits both on their collateralized tokens and their borrowed assets. Over-collateralization management is also among unique features of Impermax (IMX). The platform allows users to borrow only those assets they are using as collateral. By doing so, the protocol ensures that collateral of each loan is precisely tied to the value borrowed. Such a measure ensures that the loan is always secured by the asset, thus eliminating the liquidation risk and preventing undercollateralization For example, if one wants to use his ETH/USDT assets to secure a loan, one is only allowed to borrow either ETH or USDT. Impermanent loss is also a unique feature that sets Impermax (IMX) apart from other crypto lending/borrowing projects. Here, lenders benefit from an algorithmically secured debt repayment procedure where the risk of no-permanent loss is shifted to the borrower. This gives the lenders peace of mind that the value of their investment always remains unchangeable, irrespective of their engagement in the liquidity pool. Impermax (IMX) also offers the flexibility to select between higher and lower risk/reward positions for DEX farming. This opens new earning opportunities for liquidity providers who can now take loans against their existing AMM LP tokens and utilize the funds to perform other investing activities.
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