Today, we are excited to announce that we have partnered with InfinityPools and are now working on developing Orange’s LPDfi vault on them. We will be launching the vault in the following months.

This strategic partnership aims to simplify and enhance the LP experience on top of InfinityPools.

TL;DR of the collaboration

• Orange Finance offers a delta-hedging liquidity manager vault on top of InfinityPools.

• The InfinityPools team supports Orange teams’ development and integration with them.

LPDfi vault on InfinityPools

Orange Finance is a protocol specialized in earning real yields from AMMs on Arbitrum. Currently, we deliver stable real yields to users as ALM by managing liquidity and hedging/adjusting market risks.

On top of the InfinityPools, we will provide an LPDfi Vault which earns both trading fees and loan fees with an optimized price range, implementing a delta-hedging strategy to mitigate losses from market volatility.

ALM Integration simplifies your LP experience

By integrating with the Orange Finance vault, users on InfinityPools can earn passive yields without dealing with complexities like setting price ranges, rebalancing, or implementing LP hedging strategies.

The overview of the LPDfi vault on InfinityPools

• Pool: ETH-USDC pool on InfinityPools

• Chain: Arbitrum

• Deposit Asset: USDC

• Eligibility: Open to anyone

• Strategy:

  The vault implements a delta-neutral strategy by using Aave. A portion of deposited USDC is collateralized on Aave, and ETH is borrowed from them. As the ETH position is borrowed, even if the ETH price decreases, the vault can hedge a portion of losses compared to an unhedged position.

• Price range:

  The price range is set by simulating volatility with statistical and financial models and parameters.

Why the LPDfi vault on InfinityPools?

Utilizing LP tokens as the loan source, InfinityPools is bringing a new leveraged swap primitive, allowing unlimited leverage on any asset, with no liquidations, no counterparty risk & no oracles.

Typically, LPs generate income from swap fees only when their liquidity falls within a certain range. However, under the InfinityPools loan model, LPs have the dual benefit of earning swap fees when their capital is within the range and loan fees when their capital is lent out to traders. We believe InfinityPools enhances the profitability of liquidity provisioning.

About InfinityPools

IntinityPools is a decentralized exchange that offers unlimited leverage on any asset, with no liquidations, no counterparty risk & no oracles.

About Orange Finance

Orange Finance offers advanced liquidity management on Arbitrum, specifically designed for concentrated liquidity DEXes. Through statistical modeling and delta hedging, we enhance v3 AMM capital efficiency against asset price fluctuations.