We’re thrilled to announce that Lifinity, a proactive market maker with concentrated liquidity, will be launching on Eclipse. As part of our growing ecosystem, Lifinity brings a revolutionary approach to liquidity provision and DEX market making, offering unparalleled capital efficiency and liquidity provider returns.

Lifinity Head of Communications, Durden says “As Ethereum's fastest L2, Eclipse's speed is essential for Lifinity, as we use oracles to update the prices we offer on our DEX. We are excited to partner with Eclipse for our first Ethereum L2 deployment and to expand our SVM presence.”

What is Lifinity?

Lifinity is a proactive market maker, designed to improve capital efficiency and reduce impermanent loss. Most DEXs today are reactive, leaving them at the whim of arbitrageurs and traders who extract egregious amounts of top-of-block arbitrage, and thus resulting in underperforming liquidity provider returns.

Lifinity takes the opposite approach, combining concentrated liquidity with its innovative proactive market-making and rebalancing mechanisms to offer traders better execution while reducing impermanent-loss for liquidity providers.

Key Features of Lifinity

1. Oracle-Based Pricing Lifinity uses Pyth’s high-fidelity oracles as its key pricing mechanism. Rather than relying on arbitrageurs/searchers to adjust the balance of assets in its liquidity pools to match the market price, the protocol prices trades for users based on this oracle, greatly reducing the amount of loss-versus-rebalancing (LVR) for liquidity providers.

2. Delta-Neutral Market Making In Lifinity V2, Lifinity conducted a significant upgrade to its market-making algorithm, introducing a delta-neutral market maker (DNMM). The DNMM aims to disrupt the current DEX dynamic which targets a 50/50 asset ratio by altering the rebalancing target.
   
   By targeting the initially deposited amount of the base asset and only rebalancing when an event is triggered, Lifinity’s DNMM outperforms standard constant-product market makers. The DNMM can also neutralize price risk through a number of additional venues.

3. Market Making as a Service (MMaaS) and Liquidity as a Service (LaaS) For protocols looking to create robust liquidity for their tokens, projects can provide assets for Lifinity to market make through MMaaS which allows protocols to retain any market-making profit.

For protocols looking to source liquidity, LaaS allows Lifinity to provide the assets used for market making and takes on the price risk while protocols compensate Lifinity with their assets of choice.

Why Eclipse?

Transaction inclusion guarantees and high throughput are key to Lifinity’s core products. Without them, Lifinity’s proactive market makers and delta-neutral market making mechanism will not operate at its full effectiveness.

By accessing frequent and cheap oracle updates for reliable price feeds, and utilizing that to build innovative DEX mechanics that benefit liquidity providers and traders alike, Lifinity is able to build a product that leverages the full capabilities of Eclipse.

Lifinity

Lifinity is the first oracle-based DEX on Solana, designed to improve capital efficiency and reduce impermanent loss.

App: https://lifinity.io/\
Twitter: https://twitter.com/Lifinity_io\
Discord: https://discord.gg/K2tvfcXwWr\
Medium: https://medium.com/@lifinity.io\
Documentation: https://docs.lifinity.io/\
Podcast: https://rss.com/podcasts/lifinity/