GammaSwap recently announced that it is going live on the Arbitrum mainnet. The platform underwent more than nine months of beta and alpha testing before integration.
In addition, GammaSwap was involved in years of research into CFMMs (Constant Function Market Makers). The news was shared on GammaSwap’s official Twitter/X channel.
As a first DeFi primitive, GammaSwap helps users short liquidity provider (LP) tokens from all Automated Market Maker (AMM) pools. It allows perpetual traders to use the protocol to speculate on volatility. In addition, loyal traders can take out insurance for spot market transactions.
The protocol is available to Decentralized Exchange (DEX) Market Makers to hedge LP positions. The Twitter thread stated that GammaSwap has also launched its Wrapped Pools on SushiSwap.
Liquidity providers can now earn equal or higher returns on SushiSwap, which will be scaled depending on their impermanent loss risk. At the same time, borrowers can trade volatility perpetuals without any delta risk. This is made possible by offering a time-based liquidation.
Even after the implementation, GammaSwap looks forward to releasing more updates. Here is a quick overview of these updates:-
- Expand integrations
- Completely permissionless
- Build GammaSwap V2
GammaSwap V2 will revolutionize the way concentrated liquidity is created. GammaSwap will facilitate this with fully composable tokens from liquidity providers without any liquidity fragmentation.
As for swap fees, GammSwap uses CFMM to track them while LPs earn fees from borrowers. Currently the Supply APY interface does not show the costs, but the protocol is working on it. The expected supply APY is currently 5x to 10x current values.
The development is appreciated by the GammaSwap community and offers better prospects for the protocol.