πŸ’Ή
L2FINANCE
  • L2FINANCE
  • πŸ›’Market
    • πŸ›οΈMarket Background
      • πŸ’°ETH vs Traditional Financial Market
      • πŸ’ΉLayer2 Boosts ETH to Quickly Seize Market Share
      • 🀜Liquidity Issues: Obstacles to the Development of On-chain Derivatives Track
      • πŸ’ͺLayer2 completely opens up the liquidity of the blockchain financial market
      • 🌊Trend & Prospect of Layer2
      • πŸ‘”Arbitrum is the representative leading the new era of Layer2
      • πŸ’«Ecological Comparison Chart of Each Track in Arbitrum
    • πŸ“ŒMarket Analysis and Summary
  • πŸ“–Introduction
    • πŸ“˜L2FINANCE Platform
    • β˜€οΈProspect
    • πŸ’ͺAdvantages
    • πŸ‘The Significance to Market
  • ♻️Trading Ecology
    • πŸ’²DeFi Derivatives Trading Market
    • 🌎Global Assets On-Chain
    • πŸ”Decentralized Insurance
    • πŸ”—The Correlation Between Trading Ecology
    • πŸ€‘L2FINANCE - A Market Maker and A Liquidity Provider
      • πŸ†•Innovation in Market Maker Services
    • πŸ“¨Sources of L2FINANCE's Profits
  • πŸ—ΊοΈRoadmap
    • πŸ—ΎRoadmap
  • πŸ§‘β€πŸ€β€πŸ§‘Others
    • πŸ‘«Team Members
    • 🀝Partnerships
    • πŸ“²Contact Us
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  1. Trading Ecology
  2. L2FINANCE - A Market Maker and A Liquidity Provider

Innovation in Market Maker Services

β‘ Efficient asset screening and allocation algorithm: HMM is a relatively classic learning model. L2FINANCE uses HMM to make a rational machine learning mechanism for the market maker model, which can accurately calibrate the accuracy, reduce transaction friction costs, optimize the entire market-making operation logic, and accelerate processing and concurrency.

β‘‘The steps to simplify the operation by smart contracts: AMMs are one of the most impactful DeFi innovations. Through the AMM automated market maker model, L2FINANCE can create and operate publicly available on-chain liquidity for a range of different derivatives, improving transaction efficiency and accuracy.

β‘’Eliminate impermanent losses: Due to price fluctuations or excessive trading volume of trading assets, market makers cannot adjust the weight ratio of assets in time, which may lead to losses for market makers. L2FINANCE's liquidity market maker service adopts a global liquidity model, which makes transaction fees low and has no slippage. At the same time, AIGC technology is used to realize AI automatic optimization strategy to further reduce impermanent losses caused by market fluctuations. β‘£Global risk factor model benchmarks:

Adopt AIGC technology combined with a global risk factor model. The formula is: R = rf + b1𝐹1 + b2𝐹2 … + bn𝐹𝑛 + πœ€. R is the expected return of the factor model, that is, the benchmark rate of return, rf is the risk-free interest rate, bn is the exposure of the portfolio to the factor, 𝐹𝑛 is the factor risk premium, that is, the excess return of the factor relative to the risk-free return, and πœ€ is the residual item. It mainly depends on whether it is possible to obtain excess returns relative to the benchmark rate of return.

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Last updated 2 years ago

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