Trade your impermanent loss for permanent gain. Lend, trade or leverage any asset without oracles. Live now: https://xitter.gq/t.co/2eend1xsPf
Joined May 2022
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Saffron loans live on Ammalgam
No tokens sold, liquidity stays in place, and @Saffron gains more treasury funding.
Saffron is a fixed-yield DeFi primitive on Uniswap that splits LP earnings into fixed and variable yield; Ammalgam is a DEX with lending built into its pools.
What does this mean for SFI?
xitter.gq/ammalgam/status/211769…
Quick story from most Token teams today;
“We’ve launched our token’s liquidity pool and its doing its job, then the next audit or ops bill landed. Now what? do we pull liquidity out?” not exactly a vibe..
here’s a what you can do with a Treasury-Release Loan!
The Saffron team has a SFI/USDC position and they have used that as collateral to borrow $60,000 of USDC against their $90k LP position. And they have never sold a single SFI token in the process and kept all of their liquidity in their LP position.
the liquidity can stay put while some capital gets a second job. The position may still participate in pool activity, but the loan is still a loan, no magic yield machine!
This isn't “free money”, borrowing costs can change, token prices can move, liquidity can get thin, and collateral can be liquidated. Yes, all the boring bits.
Don’t ask “what’s the max I can borrow?”; first ask: what if my token price changes could I repay? If the answer is vibes, maybe don’t lever it.
Always DM us if you need a bit of help.
Why does this matter?
Most DeFi strategies stack separate venues:
DEX for liquidity → lending market for credit → oracles for pricing
Ammalgam combines trading and lending in the pool itself.
That makes new financial primitives possible in the 1 protocol.
Ammalgam doesn’t depend on an external price oracle for each pair.
Its risk engine uses the pool’s own onchain state for pricing through: observed trading prices over time, liquidity, price ranges, utilization and the slippage required to exit collateral.
Borrowing limits are tied to what the pool can realistically support and liquidate.
That oracle-free design matters because a new pool doesn’t need to wait for a third party to publish a price feed before lending can exist around it.
Capital Release is one result:
Create liquidity → borrow against it → keep it working → redeploy the capital.
This is only one of the new mechanisms unlocked when lending lives inside a DEX.
Capital Release involves borrowing and liquidation risk. Asset prices, pool liquidity, utilization and rates can change. Looping compounds both returns and losses; size positions accordingly.
How Capital Release works:
Create or join an Ammalgam pool
Deposit the two assets
Use the pool position as collateral
Borrow an available asset, such as stables
Redeploy that capital while the pool position remains active
Your liquidity keeps working and enables capital release.
Use case #2: LP Looping
Pair a yield-bearing LP token with a stablecoin—for example, a Pendle LP token and USDC.
Then borrow stables against the new Ammalgam pool position and redeploy them into the strategy.
Repeat carefully to increase exposure: that’s the loop.
The result:
Token + stablecoin → LP position → borrow stables → redeploy
The pool can stay live and the position can continue earning swap fees and lending interest, while part of its capital is released for another use.
Token Liquidity + Capital Release.
Use case #1: Treasury Release
A token team pairs its token with a stablecoin to create liquidity.
That pool supports the tokens liquidity but it can also leave a large share of the treasury tied up.
On Ammalgam, the team can borrow stables against its token’s liquidity pool for operations without pulling the liquidity out of the token.
Ammalgam’s unique mechanism enables fundamentally different primitives to exist natively in its protocol.
It is all possible because we put a lending protocol inside a DEX.
The same pool on Ammalgam powers swaps and enables borrowing against its own pool positions.
Introducing Ammalgam’s new primitive:
Capital Release
Create a pool, borrow against it and redeploy the capital.
Thank you to @k_schellinger, @DeFiFounders, @arbitrum, @Softstack, & @ChainstackHQ for including us in the DFC Pitch Competition in Singapore
Congradulations to @fablesfi @Ladder_Markets @SierraIsMoney
Thank you to the Judges
Jerome @Jerome_ (@MF__xyz)
Aleksandr @Al_Nechaev (@FundersVC)
Roman @R_M_Evdokimov (@ContributionCap)
Gavin Wang (@SNZHolding)
Ben @HummusOnRails (@Arbitrum)
Contracts updated, smarter liquidity pools unlocked.
Anyone interested in capital efficiency? Hit us up!
I have added v1.1.0 contracts to our @cantinasecurity Bug Bounty program.
cantina.xyz/code/b5e376ee-2f…
The proposed contracts for will be available to upgrade to in less than 2 days (timelock).
The upgrades include fixes seen in the first round of the bug bounty and one major feature that will increase the capital efficiency of the contracts.
The issues found in our first bug bounty led us to disable borrowing of market making liquidity and this functionality will be enabled once again after the upgrade.
The fixes have been audited manually and with AI both externally and internally.
- Internally Manual - 3 internal engineers
- Internally AI - Codex Daybreak Blue
- Externally AI - Apex by @cantinasecurity
- Externally AI - @octane_security
- Externally Manual - @pruvendoinfo