LAVA Launches as Decentralized Lending Market Platform to Mitigate Impermanent Loss

2024. 3. 8. 15:17
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"Impermanent loss remains a significant barrier for investors providing liquidity, and creates a costly risk imbalance caused by valuation fluctuations in the cryptocurrency markets," said John Lo (a.k.a Omakase, formerly SushiSwap), Managing Partner of Digital Assets at Recharge Capital, Founder of Omakase Labs and Advisor to LAVA. "The platform enables passive liquidity providers with the ability to capture optimized risk-adjusted rates on-chain. With LAVA, sophisticated arbitrage now works for, instead of against liquidity providers."

Upon launch, LAVA is also unveiling zap-in tooling for optimized liquidity management, and a novel migrator tool to enable transfers of existing collateral and debt from alternate lending markets. "Historically, lending positions have been difficult to migrate from one protocol to the next," said Lo. "Now users can execute this in a simple two click process, ushering in a new paradigm for efficient, on-chain lending."

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HONG KONG -- Businesswire -- LAVA (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Flava.ag&esheet=53906725&newsitemid=20240307774683&lan=en-US&anchor=LAVA&index=1&md5=cf5a9ba87a52148cebaf805f40321029), a decentralized lending market platform, today announces its launch to empower liquidity providers and facilitate greater market depth. Invested by the digital asset arm of Recharge Capital (https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.rechargecapital.com%2F&esheet=53906725&newsitemid=20240307774683&lan=en-US&anchor=Recharge+Capital&index=2&md5=17999ba836fbf50a8e72582ae9a76239), a leading thematic-first investment firm, LAVA enables an infrastructure for automated market maker (AMM) liquidity positions to mitigate impermanent loss and optimize liquidity across multiple blockchain networks.

LAVA is the first global platform to solve impermanent loss in decentralized finance (DeFi) by enabling arbitrage across market making rates through the collateralization and lending of liquidity positions. The platform’s core infrastructure allows borrowers to arbitrage across liquidity provision rates between DeFi and centralized finance (CeFi) towards an effective market rate, while simplifying the yield optimization for passive liquidity providers.

“Impermanent loss remains a significant barrier for investors providing liquidity, and creates a costly risk imbalance caused by valuation fluctuations in the cryptocurrency markets,” said John Lo (a.k.a Omakase, formerly SushiSwap), Managing Partner of Digital Assets at Recharge Capital, Founder of Omakase Labs and Advisor to LAVA. “The platform enables passive liquidity providers with the ability to capture optimized risk-adjusted rates on-chain. With LAVA, sophisticated arbitrage now works for, instead of against liquidity providers.”

Upon launch, LAVA is also unveiling zap-in tooling for optimized liquidity management, and a novel migrator tool to enable transfers of existing collateral and debt from alternate lending markets. “Historically, lending positions have been difficult to migrate from one protocol to the next,” said Lo. “Now users can execute this in a simple two click process, ushering in a new paradigm for efficient, on-chain lending.”

“The LAVA team has created a critical solution to address one of the perennial barriers for investors in decentralized finance,” said Lo. “The company’s launch serves as a catalyst for investors in the DeFi ecosystem, and we’re proud to support its mission to advance democratization in finance through transparent, on-chain liquidity and move away from opaque, off-chain market making systems.”

LAVA functions as a multi-chain platform and is currently available on Arbitrum and Base. The protocol plans to add functionality with additional blockchains in the near future and introduce token applications to fuel growth in lending markets.

About LAVA

LAVA is a decentralized lending market platform focused on mitigating impermanent loss and optimizing liquidity across multiple blockchain networks. Based in Hong Kong, Europe, and Singapore, the protocol’s mission is to address the perennial barriers for liquidity providers in decentralized finance through transparency and democratization on-chain.

About Recharge Capital

Recharge Capital is a leading thematic-first private investment firm focused on driving innovation and impact across various sectors and strategies. Through its core themes of digital assets, women’s healthcare, fintech infrastructure, semiconductor enablements and synthetic biology, the firm leverages its expertise and strategic partnerships to invest, scale, and optimize transformative businesses. Recharge Capital operates from its offices in New York and Singapore, serving as a catalyst for positive change in the global investment landscape. For further information about Recharge Capital and its global initiatives, please visit our website at www.rechargecapital.com or contact our press office at media@rechargecapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240307774683/en/

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