Offering traders a way to speculate on the upcoming Ethereum merge, Voltz launches stETH and rETH pools.
LONDON, July 1, 2022 /PRNewswire-PRWeb/ — Voltz Protocol, DeFi’s first synthetic interest rate swap (IRS) AMM, launches Lido (stETH) and Rocket (rETH) pools, providing traders with a capital-efficient way to speculate on the upcoming merge whilst also serving as a sophisticated primitive for returns risk management.
The move to launch these new stETH and rETH pools comes after Voltz Protocol initially launched with Aave and Compound base stablecoin rates. Each pool has a liquidity provider margin cap of $1.5m, which will increase over time until it is lifted entirely. Because the protocol is synthetic and generalizable, pools can be created for any asset with a variable rate of return, providing the opportunity for an even wider range of financial products and trading strategies.
Simon Jones, CEO & Co-Founder of Voltz Labs, said, “We’re excited to launch these new pools in stETH and rETH, providing traders the ability to speculate on the upcoming ETH merge and allowing them to leverage trading strategies historically only available in TradFi. Without the core pillar of IRS, DeFi won’t be able to serve the financial needs of the world and therefore will never realize its full potential.”
In Voltz’s IRS trading, one side is defined as Fixed Takers (FTs), where one trader swaps a variable rate and ends up with a fixed rate of return. This provides traders with the ability to de-risk their portfolios by ‘locking in’ a fixed interest rate. The other side of the trade, defined as Variable Takers (VTs), swaps a fixed rate and ends up with a variable rate of return. Together, this enables more sophisticated traders to increase potential profit capture on the rates of individual assets, like stETH, rETH, and base stablecoin rates found in Aave and Compound. Voltz IRS strategies can be effective in bull, bear, and neutral market conditions.
Voltz Protocol is distinct from other IRS protocols in its design, utilizing state-of-the-art financial engineering to provide a mechanism that is up to 3,000x more capital efficient than alternative models. Among the innovations used by the protocol are a concentrated liquidity virtual AMM (vAMM) for price discovery, a Margin Engine for managing underlying assets, and a Risk Engine that allows for large amounts of leverage to be used while minimizing liquidation risks. In addition, the risk of impermanent loss is eliminated for Voltz liquidity providers, due to single-asset LPing.
As an open-source, highly composable protocol, Voltz can serve as a catalyst for a new wave of DeFi products that previously were unattainable. Potential applications include on-chain fixed-rate mortgages, loans, and savings accounts, as well as swaptions, IRS caps and floors, automated risk management systems, and DAO treasury management. The Voltz Labs team aims to provide developers with the guidance and resources they need to build on top of the Voltz Protocol with minimal friction.
In December 2021, Voltz Labs, the entity behind Voltz Protocol, completed a $6M seed round led by Framework Ventures, with participation from Fabric Ventures, Coinbase Ventures, Amber Group, Wintermute, Robot Ventures, Mgnr, Entrepreneur First, Backed and NEMO among other angel investors. Voltz Protocol was launched on Ethereum Mainnet in June 2022.
For media inquiries, please contact Phil LeRoy at (310) 260-7901 or phil(at)melrosepr(dot)com.
About Voltz Protocol
Voltz Protocol is DeFi’s first synthetic interest rate swap AMM and is up to 3,000x more capital efficient than alternative models. Interest rate swaps are a core pillar of TradFi, involving over $1,000tn notional exchanged each year, but have previously been accessible only to banks and other institutions. Voltz Protocol puts the power of rate trading into the hands of everyday traders and developers, ushering in a new era of composable, permissionless, and open-source financial products.
Phil LeRoy, Melrose PR, 310-260-7901, email@example.com