Mercurial Finance is in the process of creating dynamic vaults for stable assets. These vaults will provide technical tools for users who can then deposit or mint stable assets and generate liquidity for their own requirements. Such users can also offer these stable assets to ecosystem participants who are in need.
The assets will be used to facilitate a wide range of cases such as lending, flash loans, low slippage swaps, and external 3rd party decentralized protocols. The platform will allow the creation of synthetics such as mUSD or mBTC, increasing the availability of pegged assets within the Solana ecosystem.
Mercurial Vaults features:
- Low slippage swaps for forex pairs and stable pairs
- Flexible allocation to external platforms such as lending protocols to earn additional yield or interest
- Dynamic fees that aim at leveraging the existing market conditions and improve LP profits.
Why stable coins?
Stable coins are a big part of the DeFi demand across lending, synthetic assets creation, and swapping. The platform will focus on creating AMM vaults for USDC, USDT, wUSDC, and wUSDT, which are already native and wrapped stables on the Solana ecosystem. The system will be futuristic and will allow innovation as the Solana ecosystem rolls out new features and functionalities.
Dynamic Market Making Vaults
The dynamic vaults aim at improving the profit potential of deposited capital and swaps. Each vault will have the following features:
- Liquidity: There will be high liquidity accessible for both swaps and deployment
- Composability: Ability to collaborate with other projects and benefit the users
- Secure: Capital will be kept secure while addressing various risk profiles.
Key Aspects in A Mercurial Vault
Vault Program: AMMs Optimized for Stable Token Sets
There will be a multi-token market marker with dynamic fees optimized for pegged assets for every Mercurial market-making vault. Mercurial offers up to 100x better slippage for pegged asset swaps compared to traditional AMMs.
Dynamic Fee Program
all vaults share the same dynamic fees program. Some of the things stored in this program include volatility data and market volume, and this will be used to update the LP fees accordingly.
The role of yield programs will be to manage the dynamic allocation of assets from every vault to external programs through on-chain algorithms. However, these yield programs must be approved by DAO before the deployment of capital in the vault to external programs.
Some of the major roles and decisions to be made by the DAO include:
- Base commissions and fees on swaps and fault operations
- Whether the fees will be distributed or burnt
- Decide on the destination of capital deployed
- Decide on the maximum amount of capital to be deployed for every vault
- Approve yield programs