# 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.

<figure><img src="/files/W5PToA5NI0tVT8ubxVzF" alt="" width="563"><figcaption></figcaption></figure>

### **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.

<figure><img src="/files/mLEINe3lAlELaD439bLz" alt=""><figcaption></figcaption></figure>

### **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.


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