##What Is Impermax? Automated Market Makers like Uniswap rely on liquidity providers to maintain liquidity for decentralized exchange services. Liquidity providers are sometimes called yield farmers, and their positions are tracked with LP tokens. Although LP tokens have well-defined values, traditional DeFi lending services do not accept LP tokens as collateral for loans. Impermax solves this problem.
Impermax is a DeFi lending platform that lets liquidity providers use their LP tokens as collateral for permissionless loans, potentially unlocking billions of dollars locked in LP token contracts that are otherwise unusable.
These LP token backed loans can be used for trading, staking, or any other purposes, but the most notable case is to use loans to further increase one's liquidity providing position. This allows yield farmers to multiply farming returns many times over without adding any additional funds of their own. This is called Leveraged Yield Farming, and it's what Impermax is designed for.
##What Is Leveraged Yield Farming? A yield farmer can use Impermax to leverage (multiply) their AMM yields up to 20 times, (although leverage comes with increased risk of impermanent loss.) For example, if a liquidity provider is earning 40% apy, they can borrow to increase their position to multiply that yield up to x20, or 800% apy, minus interest payments to lenders. The Impermax smart contract performs numerous borrowing steps to create a leveraged position in a single transaction. This gives liquidity providers the ability to choose the level of risk and reward they want, increasing economic efficiencies across the entire AMM industry.
##Lending On Impermax Users can also choose to supply funds for lending, indirectly adding to liquidity on AMMs and earning interest with no risk of impermanent loss (since this risk is entirely transferred to the borrower.) Interest rates earned by lenders are dynamic, always changing based on supply and demand of each token.
Since borrowers can only borrow the same assets they are using as collateral, each loan's collateral is precisely matched to the value borrowed. This allows Impermax to nearly eliminate the overcollateralization commonly required in the DeFi lending industry.
Uniswap V2 is the first supported AMM, but plans are in place to support Uniswap V3 and all other major AMMs. Anyone is free to add any trading pair to the app using a simple UI.
##What Is The IMX Token For? Impermax keeps a percentage of every interest payment. IMX token holders control governance, profits, and reserves generated by interest and fees on the Impermax lending platform.
##Who Created Impermax? The Impermax app was created by software developer Simone Rigolon and game designer/economist Brian Tinsman and launched on Ethereum March 1 2021. The team saw economic inefficiencies in the AMM industry's use of LP tokens and designed the protocol to fill in this missing piece of the DeFi puzzle. The IMX token launched April 29 2021.
##Where Can I Buy IMX? IMX is available on Uniswap V2 https://app.uniswap.org/#/swap
The Impermax platform is available at https://app.impermax.finance/