Introduction

MAKE AMM GREAT AGAIN

The defining feature of Nitro Finance is its Fused Trade Ledger (FTL), a unique AMM structure that combines the functionality of a Decentralized Exchange (DEX) and a Money Market into a single, unified liquidity pool.

The FTL enables pairwise interactions like never before, using a single pool to seamlessly power all core DeFi activities:

Token Exchange

Efortlessly swap assets in a trading pair (e.g., $NAD/$USDC) or across trading pairs.

• Exchange $NAD for $USDC or vice versa with minimal fees and possibilities of 0% slippage, ensuring optimal trade execution.

Liquidity Provisioning

Provide liquidity to specific trading pairs (e.g., $NAD/$USDC).

• Earn fees from both swaps and borrowing activity, maximizing your returns across all trade types—all within the same pool.

Borrowing

In a NAD/USDC pool, borrowers can lock $NAD as collateral to borrow $USDC.

• The FTL handles borrowing directly in the same pool, eliminating the need for a separate money market platform and simplifying the user experience.

The FTL doesn’t just simplify DeFi, it amplifies it, creating a highly capital-efficient and balanced market:

Mitigation of Impermanent Loss (IL):

• Impermanent loss is a major profitability risk for LPs. Nitro Finance mitigates this risk by generating additional fees through debt interactions, providing LPs with an extra revenue stream to offset potential losses.

Enhanced Capital Efficiency & Reduced Fragmentation:

• Consolidating borrowing and swapping within a single pool eliminates the need for multiple platforms, helping users maximize their assets while reducing fragmentation.

Simplified Liquidity Management:

• Inactive liquidity positions are automatically transitioned to lending, allowing LPs to earn consistent yields without constant rebalancing.

Deepening Liquidity:

• The FTL attracts a diverse set of participants, including lenders for money markets and liquidity providers for DEXs. This increases liquidity depth, enabling 0% slippage on trades.

Balanced Market Dynamics:

• Borrowing options distribute selling pressure more evenly across price bins, stabilizing market prices and fostering continuous price discovery.