The problem Nabla solves

Classic passive AMMs like Uniswap or Curve are the backbone of DeFi, and optimal designs to trade assets that require onchain price finding (like longtail governance tokens, meme coins, etc.), or to trade likewise stables where no major price deviations are to be expected. But they are not optimized to trade assets where the price-finding happens predominantly offchain (e.g. major cryptos, or most RWAs) or algorithmically (e.g. staked/yielding assets). Providers of liquidity for these tokens thus suffer from unnecessary Impermanent Loss and low capital efficiency. This makes LPing for those tokens in most cases unprofitable (i.e. when considering the opportunity costs), which in turn means that the respective token issuers have to pay for liquidity one way or another (either by providing liquidity themselves, by paying a professional market maker, by “bribing” AMM token holders to steer incentives to their pools, or by paying direct LP incentives). These high costs of liquidity are in most cases not sustainable and prohibit to attract deep swap liquidity - which in turn hinders the wide-spread usage of the the respective assets. Nabla is on a mission to change that, and to drastically lower the costs of liquidity, increase the risk-adjusted returns for LPs, and reduce the slippage for traders.

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