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Frequently Asked Questions
IBEX Token
- IBEX is a governance token that controls all the reserve income generated by the Impermax lending markets across all supported networks. Holders will have the ability to receive this passive income, as well as governing the future of the project.
- A % of each interest payment is sent to the reserve account to be distributed as profits and/or growth development funds, according to the on-chain governance.
- There is a max supply of 72,500,000 tokens.
- Impermax is distributing 40% of total supply to borrowers over the first 4 years of operation. In order to earn this reward you can borrow or leverage funds on supported pairs.
Impermax System
- Impermax enables Indirect Liquidity Providing. This means liquidity providers can lend funds to other providers who use them to earn AMM yields and then share the returns with the lender. All impermanent loss is carried by the borrower. The Indirect Liquidity Provider is free to yield farm with no impermanent loss risk.
- Some yield farmers (also called AMM Liquidity Providers) are looking for a way to eliminate impermanent loss and still earn yield. Other yield farmers are looking for a way to increase their returns and aren’t as concerned about impermanent loss. Impermax solves both of these problems by allowing risk-averse farmers to lend funds to risk-tolerant farmers.
- Currently it is Ethereum, Polygon, Arbitrum, Avalanche, Base and Sonic.
- Basic liquidity providers on AMMs (like QuickSwap & Uniswap) earn yield from transaction fees and liquidity mining. Impermax allows users to greatly increase or decrease the risk and returns of these yields.
- Indirect Liquidity Providing is much easier than basic liquidity providing. Just deposit any supported token on the app, earn passive returns, and withdraw them at any time. It works similar to staking.
For ImpermaxV2
Yes, multiple third party audits have been completed with no major security issues found.
Certik performed a code audit available here.
CyberUnit performed a code audit available here.
For ImpermaxV3
BailSec performed a code audit available here
Guardian Audit performed a code audit available here.
For a more comprehensive guide on how to use Impermax check out our video tutorial on Youtube.
- No, your funds are safe. Deleverage breaks down the LP token in the 2 underlying assets and use them to pay the debt. The remaining tokens are sent to your wallet as underlying asset.
Most likely you're using Ledger on Polygon. In this case message signing has a bug so what you need to do in order to bypass the problem is:
- Click on approve
- Refuse to sign the message
- You will be asked to approve by sending a transaction. Proceed.
- Now everything should work normally
Using the app
- No. You can withdraw and deposit funds from Impermax at any time.
Impermax supports all major EVM wallets such as MetaMask, Rabby and Coinbase Wallet.
Liquidation
When you take a leveraged position you choose a price movement window for the LP token pair you are leveraging. The higher the leverage you choose, the smaller the price movement window. If the relative prices of the tokens in the pair move higher or lower than the window, your leveraged LP tokens will be sold and the loan automatically repaid. If this happens, you don’t lose your entire balance. You will only lose 4% of the borrowed amount. More details are here.
- You can reduce the risk of liquidation in several ways. Choosing token pairs with low volatility relative to each other reduces risk. Choosing lower leverage and therefore a wider liquidation window reduces risk. If you check back and see that your position is getting closer to liquidation you can reduce leverage or deleverage completely any time you want.
Yield Leverage
- Leverage is when you borrow funds and use them to increase the size of your token holdings. You can earn increased rewards on this higher amount, then later pay back the loan and keep the rewards. If you use $1,000 as collateral to borrow $4,000 we call that x5 leverage because your position went from $1,000 to $5,000.
- Too much impermanent loss can mean your leveraged position gets liquidated. Liquidation is only possible with leveraged positions and borrowing, not Indirect Liquidity Providing. If the relative prices of the tokens in a LP token pair diverge too much, the system automatically sells the LP tokens and repays the lender. As with all DeFi, there are also contract risks, although Impermax has taken steps to reduce these.
- Yield leverage is for users who want to multiply their returns. First, provide liquidity on Uniswap V2 or any other supported AMM and acquire some LP tokens. Then deposit the LP tokens on Impermax. Then choose the amount of leverage you want. This lets you borrow funds to increase your position (and therefore earnings) by many multiples in most cases.