Risk Oracle

Infinity, today, has two core features:

  • Rates Trading System

  • Collateral Risk Management System or "Risk Oracle"

While the Trading interface is simply an order book (not that simple under the hood, mind you), the Risk Oracle is a incredibly complex Market Risk and Credit Risk (and - many other risks) management system that may be applied to essentially any asset either on-chain, or off-chain. The Risk Oracle then makes these sets of pricing, and risk management available on-chain. Learn more about our Risk Management System.

By using credit-risk management on-chain, Infinity then needs to hedge the credit risk thus catalyzing the credit (and other) markets as it grows.

Any protocol can use the Risk Oracle to manage both Market Risk and Credit Risk. For example:

  • if Aave wanted to take Uniswap V3 NFT positions as collateral, Infinity could make that available through a smart contract.

  • If Compound wanted to take Futures positions on dYdX as collateral, Infinity could make that available through a smart contract

  • If Uniswap wanted to take WBTC as collateral for a USDTETH pool (yes, cross-currency LP investing with embedded financing), Infinity could also make that available through a smart contract

In short, Infinity can enables cross-margining of very complex positions available for any DeFi protocol unlocking unlimited new possibilities.

Partner Protocols

Infinity looks to offer $IFT tokens as rewards and/or grants to other protocols that look to integrate more complex cross-margining. For example, if Aave wanted to take Uniswap V3 NFTs as collateral, we could offer $IFT tokens as an incentive for Aave users try out this new feature.

In most cases, we would look to jointly fund such initiatives from a mix of our treasury tokens and the other protocol's tokens, and then grant $IFT tokens as token rewards to encourage the right user-behaviors.

Last updated