Single Sided Liquidity Provision

Perpetual Instrument

A utilizer with asset x would propose a loan to borrow asset y from RAMM, to supply it to a liquidity pool that trades the x-y pair. Fees generated from the LP position along with the impermanent loss position would be split pro-rata in accordance with the respective original supply positions.

Managers will assess whether their assumed volatility of the x-y pair is compensated by the fees to be generated by liquidity provision.

Example: The price of ETH/USDC is 1000USDC. A utilizer with 1 ETH would propose to borrow 1000 USDC from RAMM to provide liquidity to ETH-USDC pool.