😈 The stoploss protocol is a decentralized protocol against impermanent losses.
Is allows Liquidity Providers (LPs) to limit their impermanent losses on Automated Market Makers (AMMs, eg. Uniswap) in a safe, automated and non-custodial way.
Impermanent losses for LPs is recognized in the industry as the biggest problem of AMMs: "Impermanent loss is by far one of the biggest detriments to the success of DEXs like Uniswap." — Lucas and Cooper
« :Imp:ermanent losses has become a problem about equal to having an elephant in the living room. It's so big you just can't ignore it. » — :smiling-imp: **
Most LPs supplying liquidity to AMMs such as Uniswap suffer from Impermanent losses. StopLoss.finance will allow LPs to limit those losses via a decentralized StopLoss protocol that triggers automated liquidations based on users' maximum acceptable loss.
The alpha version will allow users on https://stoploss.finance to:
- Provide Liquidity to the 4 UNI Pools (ETH/USDT, ETH/USDC, ETH/DAI & ETH/WBTC)
- Set a stop loss order to limit impermanent losses with a guaranteed amount in Tokens
Example:
- Provide 700 DAI as liquidity in the ETH/DAI pool
- Place a stop-loss order guaranteeing 500 DAI
- If the liquidity of the LP gets close to 500 DAI (500+X%), LP position will get liquidated, 500 DAI will be sent to the LP.*
OR For the most bullish of us
- Provide 3 ETH in the ETH/DAI pool
- Place a stop-loss order guaranteeing 2 ETH
- If the liquidity of the LP gets close to 2ETH (2ETH+X%), LP position will get liquidated, 2ETH DAI will be sent to the LP.*
*The agent in charge of liquidating the position will get the X%
[Soon™]