🌊COMB (Compartment-Based) Pool

Filament introduces a Compartment-based Pool (COMB), which is intricately designed to work seamlessly with its order book, enhancing the trading experience on its perpetuals platform. This system is built around the use of a stablecoin, say USDC, offering a stable and efficient trading environment.

1. Liquidity Provision and LP Tokens: a. The COMB encourages users to deposit stablecoins, say USDC, into a shared vault. Users then receive LP tokens in return, representing a proportional share of the pool. For example, a contribution of 1000 USDC would grant a 0.1% share in a pool containing 1,000,000 USDC. b. The stable coins gathered by the COMB are stored securely in a vault. This vault is essential as it serves as the counterparty for all trades executed on Filament’s perpetuals platform.

2. Facilitating Leveraged Trades through Stablecoin Liquidity Layer: a. The stablecoin liquidity layer provided by the COMB primarily facilitates leveraged trades placed on the platform. b. In this model, all trade aspects – the trader’s collateral, profit and loss (P&L), and borrowed funds – are exclusively denominated in stablecoin, say USDC. This uniformity simplifies trading and enhances transaction stability.

3. Benefits of COMB in Asset Listing and Trading: a. A major benefit of the COMB is that it eliminates the need to bootstrap liquidity for each listed asset. Most of the existing perpetuals products require a new liquidity pool for each token listed, which can be resource- intensive. Filament’s COMB solves this issue by centralising liquidity in stablecoin, say USDC. b. As a result, a wide range of assets, from established ones like BTC to emerging tokens, can be easily traded against the USDC vault. This flexibility significantly expands trading opportunities on the platform.

4. Mitigating Impermanent Loss for Liquidity Providers: a. Filament’s COMB model protects liquidity providers from the risk of impermanent loss due to asset price fluctuations, unlike variable automated market maker (vAMM) models. The vault’s exclusive storage of stablecoins means that the funds supplied by liquidity providers are not directly affected by the price volatility of various traded assets.

5. Integration with the Order Book: a. In terms of the order book, the COMB serves as a reliable backstop, particularly for large or partially unfulfilled orders. If an order cannot be fully matched in the order book, the COMB’s USDC liquidity is used to fill the gap, ensuring continuous and efficient trade execution. This integration not only simplifies the trading process but also ensures consistent liquidity across the platform.

Filament Finance’s COMB, in conjunction with its order book, presents a sophisticated and stable trading ecosystem. This innovative approach addresses common challenges in decentralized exchanges, offering both liquidity providers and traders a more efficient, secure, and flexible trading environment. Read more about the COMB Pool in the Filament litepaper