Automated Market Makers like Uniswap rely on liquidity providers to maintain liquidity for decentralized exchange services. Liquidity providers are sometimes called yield farmers, and their positions are tracked with LP tokens. Although LP tokens have well-defined values, traditional DeFi lending services do not accept LP tokens as collateral for loans. Impermax solves this problem. Impermax is a DeFi lending platform that lets liquidity providers use their LP tokens as collateral for permissionless loans, potentially unlocking billions of dollars locked in LP token contracts that are otherwise unusable. These LP token backed loans can be used for trading, staking, or any other purposes, but the most notable case is to use loans to further increase one's liquidity providing position. This allows yield farmers to multiply farming returns many times over without adding any additional funds of their own. This is called Leveraged Yield Farming, and it's what Impermax is designed for. What is Impermax Finance (IMX) | What is Impermax Finance token | What is IMX token
In this article, we'll discuss information about the Impermax project and IMX token
Impermax Finance is an automated crypto lending platform for users of Uniswap and other decentralized exchanges.
How did you increase your position so easily? You took a loan to leverage your LP tokens times 10, and then you paid it back after earning those high yields. That’s only possible with the new Impermax lending platform.
Impermax is the industry’s first decentralized lending platform designed to let Uniswap liquidity providers use their LP tokens as collateral for loans.
Holding LP tokens that can’t be used as collateral has always been an opportunity cost for liquidity providers, and Impermax removes this cost for billions of dollars of value currently held in LP tokens. Since Impermax is permissionless, anyone can create a new lending pair and thus every token pair on Uniswap will be supported on day 1.
One key part of the economic design is that Impermax only lets borrowers borrow the same tokens represented by their LP token collateral. For example, if you want to borrow against your ETH/DAI LP tokens, you will only be able to borrow ETH and DAI.
This matching of collateral type to loan type brings a number of interesting advantages. Since every loan is backed by assets that are matched to its value, the need for overcollateralization is nearly eliminated. Borrowers will be able to borrow higher amounts with lower liquidation risk than other lending platforms.
But if you already have some ETH and DAI locked in LP tokens, why would you want to borrow more ETH and DAI? To multiply your yield!
Impermax makes it possible to borrow tokens (like ETH and DAI), use them to provide more liquidity, receive more LP tokens, and borrow against them again and again. You specify the amount of leverage you want, and the Impermax app will repeat multiple times through this loop behind the scenes, all in the same transaction. This means it’s easy to leverage your LP tokens 10x or higher, all at once. So you’ll be able to earn 10x the yield or other benefits on those tokens, depending on your risk tolerance.
The Impermax app lets you select the amount of leverage you want and shows the range of price changes that would result in your collateral being liquidated. You can choose any risk/reward level you want.
What about the lender? What’s in it for them? The lender receives a guaranteed interest rate, with loan repayment backed algorithmically. This means the lender can indirectly provide liquidity to Uniswap and earn returns with no risk of impermanent loss. In effect, the risk is shifted to the borrower. This will also be great for Uniswap since there’s now a better way for low-risk users to become liquidity providers.
Uniswap liquidity providers who want to earn with higher risk/reward can borrow, and users who want to earn with lower risk can lend. Impermax shifts risk according to each user’s needs and creates economic efficiencies across Uniswap. Impermax also plans to support other exchanges this year, extending these efficiencies across the AMM industry.
Of course Impermax takes a fee with every transaction, and these earnings are managed with a simple governance token called IMX. This token will allow users control of funds generated with this platform and all future products released by Impermax.
We are pleased to share Impermax’s IMX token distribution.
Airdrop: Impermax will drop 14M IMX tokens to top Uniswap liquidity providers. This airdrop strategy has proven very popular and effective for other projects.
Initial Uniswap Liquidity: 1M IMX tokens are allocated to creating the starting supply on Uniswap, ensuring plenty of early liquidity.
Treasury (IMX Leveraged Farming): 40M IMX tokens are allocated to the liquidity mining program, which will run for 4 years after token launch. Yield is earned by borrowing any tokens, which means users can multiply their IMX yields by leveraging any token. That’s in addition to other yields they may be earning with leverage. This is something that’s found only on Impermax.
*Private Sale: *10M IMX tokens were sold in the private sale for $500,000 USD at a price of $0.05 to fund early development and liquidity. These tokens will unlock slowly over 4 years (see distribution schedule below).
Protocol Growth and Development: 20M tokens are set aside to help pay for hiring more developers and expanding the protocol to all major AMM platforms. These funds will unlock slowly over 4 years (see distribution schedule below).
Core Contributors: 12M tokens are allocated for the founding team and other critical team members. These funds will unlock slowly over 4 years (see distribution schedule below).
Community: 1M tokens are reserved for community rewards, including the airdrop to pre-launch suppliers and borrowers. Note: if the total amount supplied reaches $2M or higher, the pre-launch user airdrop will double from 250K to 500K. There’s still time! https://impermax.medium.com/imx-airdrop-for-pre-launch-impermax-users-fc119ee6a7e6
Advisors and Partners: 2M tokens are reserved for key people and groups that are helping Impermax’s success. These funds will unlock slowly over 4 years (see distribution schedule below.)
Locked IMX tokens use a simple unlocking curve that reduces the rate of unlocking by 2.4% every 2 weeks. This creates the above curve. Note that the Uniswap airdrop and starting liquidity are the only tokens that begin unlocked.
The Uniswap listing price will be $0.10. Due to 4-year lockups for growth funds, early investors, and team members, the market cap of IMX at this price will be about $1.8M on the day of release.
All interest income on the platform is automatically split, with lenders collecting at least 80% and Impermax collecting up to 20% of each payment. There is also a 0.1% flat borrowing fee on each loan, which is similarly split.
IMX token holders will have full control of this ongoing income generated by the platform, allocating it to fund proposals or taking profits as they wish.
The IMX token is a simple governance token based on the model of other DeFi lending projects like Compound. IMX holders will have sole voting rights on project governance.
IMX token is now live on the Ethereum mainnet. The token address for IMX is 0x7b35ce522cb72e4077baeb96cb923a5529764a00. Be cautious not to purchase any other token with a smart contract different from this one (as this can be easily faked). We strongly advise to be vigilant and stay safe throughout the launch. Don’t let the excitement get the best of you.
Just be sure you have enough ETH in your wallet to cover the transaction fees.
You will have to first buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)...
We will use Binance Exchange here as it is one of the largest crypto exchanges that accept fiat deposits.
Once you finished the KYC process. You will be asked to add a payment method. Here you can either choose to provide a credit/debit card or use a bank transfer, and buy one of the major cryptocurrencies, usually either Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance (BNB)...
Step by Step Guide : What is Binance | How to Create an account on Binance (Updated 2021)
You need a wallet address to Connect to Uniswap Decentralized Exchange, we use Metamask wallet
If you don't have a Metamask wallet, read this article and follow the steps
Transfer $ETH to your new Metamask wallet from your existing wallet
Connect Metamask wallet to Uniswap Decentralized Exchange and Buy, Swap IMX token
The top exchange for trading in IMX token is currently Uniswap (V2), 1inch Exchange and Bilaxy
Apart from the exchange(s) above, there are a few popular crypto exchanges where they have decent daily trading volumes and a huge user base. This will ensure you will be able to sell your coins at any time and the fees will usually be lower. It is suggested that you also register on these exchanges since once IMX gets listed there it will attract a large amount of trading volumes from the users there, that means you will be having some great trading opportunities!
Top exchanges for token-coin trading. Follow instructions and make unlimited money
Find more information IMX
🔺DISCLAIMER: The Information in the post isn't financial advice, is intended FOR GENERAL INFORMATION PURPOSES ONLY. Trading Cryptocurrency is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money.
🔥 If you're a beginner. I believe the article below will be useful to you
I hope this post will help you. Don't forget to leave a like, comment and sharing it with others. Thank you!
Can I write on a Bitcoin Blockchain? Can I drop down a message? Yes, Luca of course you can! You can leave a message on a Bitcoin blockchain using a particular op code, called OP_RETURN.
In all the market sectors, Blockchain technology has contributed to the redesign. The improvements that were once impossible have been pushed forward. Blockchain is one of the leading innovations with the ability to influence the various sectors...
Our Blockchain Online Training will provide you to learn about Blockchain technology aspects with realty. Our Blockchain Course also includes live sessions, live Projects
Get hands on experinece on block chain live industry experts with real world example at Block chain online Training. Enroll for free demo
Blockchain Council is a group of Blockchain experts offering Online Blockchain Certifications and Training to Blockchain enthusiasts all over the globe. Join us today!