Margined Finance aims to extend its vault framework to support delta-neutral liquidity provisioning (LPing). This innovation allows users to deposit into a vault that LPs into a specific pool while simultaneously creating a hedge for the LP position’s value. The system significantly lowers LPing risks by reducing exposure to both realized and impermanent loss.
Grant Goals:
Develop a Novel Vault Framework: Enable low-risk LPing for Cosmos blue-chip tokens.
Initial Use-Case: Deploy the framework for the Hydro platform.
Future Applications: Expand the framework to enhance liquidity provision for platforms like Osmosis DEX, Neutron DEX, and Mars.
Driving Value for ATOM:
Lower LP Risks: Encourage liquidity deployment by treasuries and DAOs, increasing overall ATOM liquidity in DEXs.
Reduce Volatility: Stabilize key Cosmos assets like ATOM, fostering adoption and improving the ecosystem’s narrative.
Treasury Management: Enable DAOs and protocols to hedge ATOM treasury values, ensuring sustainable operations and payroll consistency.
Retail Relevance: Provide a novel product for long-term use by retail ATOM holders.
