iGain Introduction by HAKKA Finance

Published on: 22.05.2021

HAKKA Finance introduced Impermanent Gain, the flagship of iGain, an options trading platform.

iGain adopts Constant Product Market Maker, and the counterparty during trading is iGain’s Liquidity Provider.

There will be three types of people participating in iGain: liquidity providers, people who want to hedge, and people who bet on rising and falling prices.

🔻Liquidity Provider

In order for participants to trade options in iGain, there must be liquidity present in the pool.

For every DAI invested by the liquidity provider, the system will automatically mint 1 Long token and 1 Short token, and put both into the liquidity pool.

Liquidity providers can earn transaction fees as income but may experience impermanent loss in the pool.

🔻How to make money via iGain?

As the price fluctuates, people’s expectations for IL on the settlement date will be different, and once there is a price difference, there is potential room for profit.

If someone predicts that the IL on the settlement date will be small, and believes that the current price of Long is too high, this means that the current price of Short is too low. Then he can choose to buy Short, and he will have the opportunity to make a profit when settlement.

In addition, as long as you buy Short, the proportion of assets in the pool will change, making the price of Short higher and the price of Long lower.

🔻Liquidity Mining

In order to encourage everyone to increase liquidity, iGain will also adopt liquidity mining. As long as you become an iGain liquidity provider and deposit LP tokens in the reward contract, you can receive Hakka as an additional reward.

🔻Vesting Period

Hakka rewards will be distributed in the mode of vesting, which can be claimed once every 19 days, with ~17.38% of the pool in one time.

*The Alpha Version will not have a liquidity reward.