Introduction

HoustonSwap is the first DEX to adopt the Concentrated Liquidity Market Making (CLMM) model on Aptos, the next viral chain catching everyone’s eyeballs today. 

On top of becoming Aptos’s most efficient liquidity layer to support the ecosystem’s development, the platform also addresses the pain points current CLMMs face:

• High risk of impermanent loss to Liquidity Providers (LPs) as the price for better capital efficiency
• Complexity in adjusting liquidity price range when seeking for better risk-adjusted return
• Lack of native solutions to hedge delta and impermanent loss for LPs

Spotting the genuine need and opportunity from this market gap, HoustonSwap was established in mid-2022 to provide solutions towards the above pain points by integrating CLMM, borrowing functionality, leveraged yield farming and automated liquidity management into a single platform. The all-in-one platform will unlock the full potential of liquidity provision with an infrastructure composed of:

1) Automated Liquidity Management

The unprecedented mechanism of concentrated liquidity amplifies the capital efficiency of liquidity provided, while also heightening the potential impermanent loss in return. Active management on liquidity allocation with fully validated backtest logic is thus essential. Our automated bot will seek for alpha in the market and safeguard users’ assets 24/7.

2. Delta Hedge with Leverage

Delta hedge on LP can be achieved with a simple tool — borrowing. Instead of inflating the position’s risk exposure, the “leverage” here aims to reduce the position’s delta with two apparent benefits: return maximization and equity stabilization. By adapting to the dynamic nature of CLMM, the protocol is built with auto delta-hedging solutions.

3. Liquidity Rewarder

The Liquidity Rewarder program opens the door for tokenized projects to provide extra yields to valuable liquidity providers. This innovative idea encourages the projects to have autonomy on their own liquidity in a seamless and intuitive manner.

4. Automated Strategy Vaults

The automated strategy vaults are designed for the DeFi users seeking favorable investment opportunities for their individual tokens. It provides a simplified way for users to provide liquidity with CLMM, without worrying about impermanent loss. Emphasizing on risk control, automated stop-loss bot will protect users’ capital according to its value in stable coin.

The vision of HoustonSwap is to aggregate, grow and sustain the best-in-class strategies for effective CLMM liquidity provision, accompanied by the comprehensive borrowing functionality and automated bots. We look forward to bringing cosmical value across Aptos and the web3 universe.