A protoccol for on-chain trustless bond swaps on Uniswap v3, built on Ethereum.
This project works upon the innovation of Yield Protocol, which pioneered an automated market maker design that allows for the capital efficient trading of fixed yield bonds. Our protocol changes the invariant slightly to allow for the low slippage swap of two different bond tokens with the same expiration date. But most consequently as a vAMM on Uniswap v3 for most efficient price execution.
How it's made
This project uses element finance's principal tokens, UMA's range bond tokens, and yieldspace AMM to create a under-collateralized debt instrument. It is made by an in-house developed invariant that takes into account a bond's maturity date. As for the range bond token, we just initialize the parameters. The interest rate on the fixed yield tokens are priced on the open market as the discount rate.Technologies used