CVI has launched its impermanent loss protection, Armadillo, on Polygon. With Armadillo, liquidity providers can obtain protection for a wide range of trading pairs such as BTC/ETH, USDC/ETH, USDT/WETH, MATIC/ETH and more.
Armadillo is a protocol that provides impermanent loss protection to liquidity providers across multiple pools. Liquidity providers have overlooked the impact of impermanent loss on their profitability (mostly due to a lack of options) – now, the Armadillo team has launched a protocol to provide seamless protection from impermanent loss.
In today’s volatile markets, liquidity providers are more likely to experience impermanent loss when staking or depositing crypto assets in a liquidity pool. The CVI team integrated Armadillo on Polygon as a follow-up to previous crypto risk management solutions like the Crypto Volatility Index (VIX for crypto markets) and Volatility Tokens (like CVOL). As a full-stack scaling solution, Polygon provides stability and security necessary for Armadillo’s faster and more efficient transactions. Using Armadillo, liquidity providers can obtain impermanent loss protection on any DEX or trading platform – it is important to note that users do not need to move their liquidity to obtain Armadillo’s impermanent loss protection. Getting Armadillo’s impermanent loss protection is as simple as following these steps:
Step 1: Choose a pair to protect.
- Armadillo protects selected pairs across any chain, DEX, or platform
Step 2: Choose the amount to protect
Step 3: Choose a protection period
- You can choose between 14, 30, or 60 days
Step 4: Automatically receive accrued IL as a payout directly to your wallet at the expiration date.
Once executed, the user is covered from impermanent loss on the specified token pair and time period. Essentially, Armadillo’s impermanent loss protection is an insurance contract represented by an NFT that specifies the coverage value, appropriate time frame, and token pairs to be covered. Any impermanent loss (i.e. token pair, timeframe, etc) will be automatically refunded to the user’s wallet in a seamless and secure manner. Armadillo is also equipped with functionality like:
- Multi-chain protection: Protects selected pairs staked across any chain, DEX, or platform.
- Non-custodial: The liquidity does not have to be moved in order to purchase the protection.
- Customized: Each user sets the pair, amount, and timeframe to protect.
- Decentralized on-chain protection: On-chain oracles and smart contracts are used to ensure security and manipulation resistance.
For more details on CVI and Armadillo, please check out this whiteboard video tutorial and read their official whitepaper. We look forward to further integrations with the Armadillo team!
Armadillo is the only protocol that provides impermanent loss protection to users without asking for their liquidity. The Armadillo team is excited to help liquidity providers protect their assets that would otherwise be lost due to impermanent loss. Using our proprietary model, any impermanent loss protection purchased will be reflected as an NFT that represents the coverage value, The appropriate timeframe, and the pair selected by the user.
Start protecting yourself against impermanent loss today! Get started here – http://armadillo.is/
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