This is a segment from the 0xResearch newsletter. To read full editions, subscribe . Launched last Friday, InfinityPools is a new DEX on Base that offers unlimited leverage and no liquidations. How does it work? To perform leveraged trades, InfinityPool traders take out loans in the form of Univ3-style concentrated AMM liquidity, as opposed to traditional stablecoin loans for margin trading. This is the crux of InfinityPool’s unique liquidation mechanism: Traders have the guaranteed option to sell their borrowed collateral back to the pool at a fixed price regardless of how much market prices fall (like a put option), thereby capping their losses at their initial deposits. For example, a trader wants to take a leveraged trade on ETH, so they borrow liquidity designed to protect against a 10% price drop. If ETH falls below the 10% threshold, they can simply return the borrowed ETH to settle the loan, and traders can’t lose more than their deposit. InfinityPools has currently two live pools — sUSDe/USDC and sUSDE/wstETH — with about $2 million in TVL on each pool. The first pool is offering ENA rewards, while the latter is offering LDO rewards. Great to see @InfPools launch on @base . Just noting an interesting strategy that a few wallets have demonstrated: 1. Borrow USDC at a fixed rate on Size @SizeCredit 2. Swap half into sUSDe on IP (Inf. Pools) 3. LP on IP Result: farm an early protocol launch with a fixed cost… — Jason Gao (@ancap_gao) January 17, 2025 Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter . Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter . Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more. The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.
