Nabla

Nabla is a novel type of Automated Market Maker (AMM) for Crypto, certain Real World Assets (e.g. stables, treasuries, commodities) and Yielding Assets (e.g. LST and LRT). Its innovative architecture almost entirely avoids Impermanent Loss (IL), whilst offering the highest possible capital efficiency. This enables much higher risk-adjusted returns for Liquidity Providers (LPs), and the lower swap costs for traders. Nabla achieves this through three means:

• Intelligent, oracle-informed pricing The swap ratios are calculated based on external oracle prices from offchain markets, and additional onchain slippage curves for the involved assets, which depend on the current pool imbalances and the historic volatility of the respective asset. This almost entirely avoids Impermanent Loss, and allows for the highest possible capital concentration around the current oracle price.

• Separation of Asset provision from Risk-taking Liquidity providers can either deposit into the low-risk single-sided Swap Pools, or into a dedicated Backstop Pool. The Backstop Pool achieves a higher ROI, but covers the residual IL risk, and all other remaining risks in the system.

• Low-risk single-sided Swap Pools Liquidity Providers in these pools are not exposed to IL or other market making risks (which are covered by the Backstop Pool). These pools therefore have a risk profile closer to lending protocols than to classic AMM pools. Furthermore Nabla works without a pairing asset, which as well reduces the required capital to achieve a certain amount of swap liquidity. All this allows Nabla to attract deep swap liquidity at much lower costs.