dAMM Finance
  • Introduction
    • Abstract
    • The Space
    • The Issues
  • The dAMM Protocol
    • What is dAMM?
    • Understanding dAMM Pools
    • Supply APY
    • Token Borrowers
  • dAMM Token
    • dAMM Utility
    • bdAMM
    • Boosted Pools
    • Governance
  • Interest Rate Model
    • Utilization Rate
    • Borrowing rates
    • Supplier Rates
  • Conclusion
    • Roadmap
    • Future Goals of the Protocol
    • Summary
    • Contract Addresses
  • Security Audit:
    • Dedaub Security Audit of dAMM Finance
  • References
    • [1] Market Making Proposal 1
    • [2] Market Making Proposal 2
    • [3] Notable Recent Exploit
    • [4] Impermanent Loss in Uniswap V3
    • [5] How Liquidity Provider (LP) Tokens Work
Powered by GitBook
On this page

Understanding dAMM Pools

Tokens are aggregated within liquidity pools and subsequently lent to institutional borrowers. Once tokens are deposited to the dAMM platform, liquidity providers are given liquidity tokens proportional to their deposit.

These liquidity tokens can be burned at any time for the underlying asset. As interest denominated in the pooled assets accrues to the token suppliers, their liquidity pool (LP) tokens can be redeemed for an increasing quantity of the token deposited and bdAMM.

Interest rates for token suppliers are determined by the algorithmic interest rate pricing curve, alongside natural supply and demand forces of the pooled asset.

PreviousWhat is dAMM?NextSupply APY

Last updated 2 years ago

Page cover image