GooseFX
  • Welcome to GooseFX
  • Risks & Disclaimer
  • GAMMA
    • GAMMA v2 - Hybrid CLMM
    • GAMMA - CPAMM
      • Learn about AMMs
      • Dynamic Fees
      • Fusion
      • Boosted Rewards
      • Program Instructions
      • FAQs
      • Risks
      • GAMMA Audit
    • GAMMA for LPs
      • How to Provide Liquidity
      • How to Add Liquidity
      • How to Withdraw Liquidity
      • How to Claim yield
      • FAQs - for LPs
    • GAMMA for Pool Creators
      • How to Create a New Pool
      • FAQs for Pool Creators
    • GAMMA Partner Program
    • Developer Docs
  • Tokenomics
    • GOFX Token
    • Validator & LST - goSOL
    • Stake Rewards & Fee Share
  • Platform Tutorials
    • How to Stake/Unstake GOFX
    • Geo Restricted
  • Community
    • Twitter
    • Blog
    • Discord
    • Telegram
    • Github
Powered by GitBook
On this page
  • GAMMA Fusion
  • FAQs

Was this helpful?

  1. GAMMA
  2. GAMMA - CPAMM

Fusion

GAMMA Fusion - Optimizing Unused Capital in Liquidity Pools

Last updated 4 months ago

Was this helpful?

GAMMA Fusion is an enhancement for GooseFX's GAMMA, designed to optimize liquidity utilization by deploying unused capital into external yield-generating platforms.

GAMMA Fusion

  1. Dynamic Liquidity Allocation

    • A portion of unused capital from pools will be deployed into external protocols like Kamino Finance, Drift, Marginfi to earn yield.

    • Blue-chip and primary token pairs (SOL-USDC) will be prioritized due to their stable price movements.

    • A maximum of 15% of TVL can be deployed to external protocols.

  2. Rebalancing Mechanism

    • Regular rebalancing to withdraw or deposit liquidity based on market volatility and pool utilization.

    • Rebalancing occurs every 15 minutes, with the flexibility to be adjusted as needed.

  3. Integration with External Protocols

    • Liquidity will be allocated to external lending/borrowing platforms or concentrated liquidity pools based on TVL thresholds. Trusted platforms like Kamino Finance, Drift, Marginfi and others.

Pool State Modifications

  • A new variable, max_shared_liquidity, will determine the proportion of liquidity deployable to external protocols.

New Instructions

  • Rebalance Pool: Automatically adjusts liquidity to stay within the max_shared_liquidity threshold.

  • Deposit Shared Liquidity: Allocates unused liquidity to external platforms.

  • Withdraw External Deposits: Reclaims liquidity from external platforms for pool needs.

Risk Mitigation

  1. Smart Contract Risks: Full audits of new functionalities.

  2. Liquidity Constraints: Ensure external platforms have no lock-in periods, avoiding liquidity shortages during high trade volumes.

  3. Operational Risks: Implement fallback mechanisms to withdraw liquidity during protocol downtimes.

FAQs

  • Does Fusion affect swap fees or slippage? No, swap fees and slippage remain the same. Fusion optimizes idle capital to maximize yields.

  • Can I create permissionless fusion pools? Yes, users can create permissionless pools, but Fusion is only added to select blue-chip pools chosen by the GooseFX team.

  • Are there risks to my deposited liquidity with Fusion? Yes, there is a small risk from external platforms’ smart contracts, where Fusion deploys idle capital.

  • How does Fusion impact my LP earnings? Fusion boosts pool yields by using idle capital in external lending protocols.

  • What percentage of liquidity is deployed externally? A maximum of 15% of TVL can be deployed to external protocols.

  • Will my LP tokens or positions change? No, Fusion does not alter your LP tokens or positions.

  • Can I withdraw 100% of my liquidity with Fusion active? Yes, you can withdraw your entire LP position at any time.

  • Are there lock-in periods for external liquidity? No, there are no lock-in periods for liquidity deployed externally.

Learn about AMMs