Impermanent loss (IL) is the hidden tax on liquidity providers.

DeFi was built on modularity. Instead of closed, vertically integrated systems, we got smart contracts that could snap together like money Legos. You could take an AMM, layer lending on top, wrap tokens, automate strategies, and build something new. Composability became more than a feature, it turned into a design philosophy.

Liquidity providers (LPs) have long accepted impermanent loss (IL) as a necessary evil of participating in automated market makers (AMMs). It’s the quiet killer of yield because it’s hard to quantify in real-time, often misunderstood, and deeply embedded in the mechanics of every AMM pool. But what if the model is flawed not in function, but in philosophy? What if instead of bracing for impermanent loss, LPs could position themselves to benefit from it?

Oracles have long been the connective tissue of decentralized finance. They feed blockchains with off-chain data so smart contracts can function. Asset prices, rates, events - everything trickles into blockchains via oracles. But this crucial role comes with risk. In recent years, we've seen oracles become the source of some of DeFi's most devastating failures, the target of hacks, manipulations and the cause of mass liquidations.

It doesn't take a black swan to wreck a protocol. Thin liquidity and bad timing can do the job just as well.

We’ve continued to push the boundaries of decentralized finance and now it’s users' turn to put it to the test.

DeFi is sitting on trillions in capital that’s barely breaking a sweat.

Liquidity providers are the lifeblood of DeFi, but right now, they’re getting the short end of the stick.

On-chain trading has come a long way since order books first made their debut a little over ten years ago. Clunky, slow swaps on early decentralized platforms evolved into faster, more efficient platforms. Automated Market Makers (AMMs) were a real game-changer, but now we've reached a point where DeFi is ready for the next step in its evolution - the decentralized lending exchange (DLEX) model. Ammalgam is the first protocol to fuse trading and lending into a single, capital-efficient system for a more cohesive experience in DeFi.