It is with great regret that you learned yesterday, as did we, of an exploit affecting our V3 code.

A sophisticated edge-case was existing and it allowed a hacker, via using a flash loan, to steal around $300k so far.

There is still $300k−$350k at risk: this risk materializes when borrowers repay their loans, making the capital available. Therefore, borrowers must not reduce their borrowing or close their positions until the remediation takes place.

The important thing for users to know is that we will not disappear and we are not giving up. We will stabilize the situation; then, recovered funds will be distributed to lenders based on a snapshot taken right before the hack.

Humbly, we do not yet know the proportions or the timeline for this reimbursement. Our first priority is to salvage the situation and minimize further losses. Then, we will determine when and how reimbursements can be made.

This is neither the first nor the last setback for Impermax. But we need to put things into perspective. The final loss is likely to be around $400k. Should we manage a successful return to the market, this amount is relatively small compared to the vast range of hacks that have occurred in DeFi in recent years.

We are small and have been weakened by this incident, but we are tenacious and dedicated.

Like an Ibex taking cover, letting the storm and the deluge pass. The bad weather will pass, and we will come back stronger.

Technical recap

The hack was made possible by a discrepancy in a valuation between uncollected and auto compounded fees used as collateral. The hacker was able to use this flaw by creating a position with largely inflated uncollected fees, using them to borrow, followed by auto compounding of uncollected fees into the existing position and then stealing them leaving the position with insufficient collateral.

Here’s how he was able to do that:

1) Taking a large flash loan on Balancer (this step is not necessarily possible).

2) Creating an Impermax V3 collateral position on a Uniswap V3 pool with low liquidity.

3) Push the tick to an extreme price in order to make the position out of balance in real terms.

4) Performing a high number of swaps (around 50) to accumulate uncollected fees on his position. At this point most of the value of his position was uncollected fees, not liquidity, mostly accumulated on one side because the position was out of balance. To pull this off, the user must be the only / majority provider within the current active liquidity.

5) Borrowing from Impermax using the uncollected fees as collateral, including the principal position*.

6) Calling reinvest to auto compound the uncollected fees. This action correctly reinvested the fees, but at the wrong tick. This will cause the position to be worth much less when it gets back to the current tick because of impermanent loss.

7) Pushing the tick back to the current tick, in order to extract value from the collateral. At this point the position is fully underwater.

8) Calling restructureBadDebt to close the position and dilute the lenders. Now the lenders’ assets are worth less than they were before the exploit.

With this exploit he was able to:

a) Immediately steal all the current available liquidity.

b) By repeating the process multiple times the attacker used step 8 to smartly dilute lenders. In this way if a borrower repays his debt, the hacker can withdraw the available liquidity before real lenders are able to.

Exploit tx: https://basescan.org/tx/0xad4fc3156666d5402f00dcfd5c183493d283f4166a6dd581dd8c0a895e826a56

*The discrepancy between the valuation of the uncollected fees in comparison with the auto compounded fees which are subject to ratio change based on safetyMargin was the root-cause of the hack.

After 2 years of development we’re finally getting ready for the launch! Impermax V3 is the ultimate leveraged yield farming protocol. Built on a strong foundation, it inherits most of its code, architecture and safety from its predecessor, while innovating and improving it. Most importantly, Impermax V3 introduces a new design that allows us to support leveraged yield farming for virtually any DEX or ALM.

Features

Impermax V3 introduces a few key features:

1. Support for concentrated liquidity DEXes… and not only that! Impermax V3 uses a modular collateralization model that is theoretically adaptable to any form of LPing to a trading pair. Here’s a list of a few DEXes that will be supported (each will require its own module):
   - Uniswap V2, V3 and V4
   - Aerodrome Slipstream
   - Algebra
   - Curve
   - Balancer
   - Automated Liqudity Managers (Gamma, Arrakis, etc..)
2. Bad debt management: After 4 years of activity we can say that positions going underwater is a rare event on Impermax. However, Impermax V2 was missing a system to automatically handle bad debt. V3 introduces a new bad debt rebalancing system that prevents underwater position by socializing the bad debt in the borrowable pools.
3. Introduction of debt ceilings as an additional risk-mitigation feature. Debt ceilings will lower the risk of cascading liquidations for tokens where most of the liquidity is deposited on Impermax.
4. Custom oracles: Impermax V3 will support both the Chainlink oracle and the TWAP oracle in order to accommodate for the best safety in any scenario.

How it works

Under the hood, Impermax V3 is just a very advanced evolution of Impermax V2. Devs familiar with the old codebase will recognize that a lot of smart contracts are mostly the same. This is not by accident or laziness. Impermax V2 has proved itself to be one of the safest protocols in DeFi. Its safety features are derived not only by the lack of bugs, but also by its simple design. For this reason, we’ve decided to inherit as much of the safety features of Impermax V2 as possible. We’ve done that by doing as few changes as possible to the old code, only what was necessary.

The main design innovation of Impermax V3 is the introduction of the concept of NFTLP. Impermax V1 and V2 only supported LP tokens as collateral. The NFTLP is a new type of collateral that was created to fix this issue.

A NFTLP is an ERC721 contract that can represent any kind of on-chain paired liquidity. It can represent a Uniswap V2/V3/V4 position, an Algebra position, a Curve position, an ALM etc… The only requirement is that it implements the NFTLP interface.

In Impermax V3 most of the logic behind the collateralization model is handled by the NFTLP. This modular approach allows the Impermax Core to support virtually any DEX by just creating new NFTLP integrations.

The NFTLP should provide:

• The price oracle
• A description of how the position’s liquidity will change at different price levels.

The Impermax V3 core operates under the assumption that the NFTLP is providing correct information.

Audit

Let us iterate this again: while developing Impermax V3, security was our top priority. We’ve spent 6 figures to hire top DeFi auditing firm, leaving no stone unturned. Impermax V3 is currently being audited by Guardian Audit and Bail Security. Both are serious and reputable auditing firms that are making sure no edge scenario remains unchecked.

Licensed code

To protect the project from malicious forks, Impermax V3 smart contracts are covered by the Business Source License (BUSL). It will be illegal to fork Impermax V3 without authorization within the first 4 years of activity.

*The Impermax V3 github repository will be opened to the public as soon as all audits are completed.

Impermax Finance is pleased to announce the introduction of our new team member William (https://ca.linkedin.com/in/williammarchand). Being CEO of Webisoft (www.webisoft.com), a digital transformation consulting and product development company with a core expertise in blockchain, SaaS and software development, he will oversee a complete rebranding of Impermax: UI, UX, design and subsequent future upgrades.

This addition to our team aims at multiple improvements, notably: creating a whole new branding, new website and a mobile app. These new updates will meet the most cutting-edge industry standards.

Moving Forward

We can’t stress how big this announcement is for Impermax especially when combined with our march towards enabling leverage yield farming on top of concentrated liquidity.

We are now beginning a long and steady session of weekly meetings with the Webisoft team, to craft what will become the foundation of the new Impermax.

What is Impermax V3?

Improved UX and concentrated liquidity support. A sneak peak? the app will have ‘’vaults’’ & ‘’markets’’.

Vaults will be based on a ‘’set and forget’’ approach and pre-made strategies where users can simply use Impermax, without the hassles of active monitoring, deep understanding of DeFI and heavy time investment.

The first release to follow-up on this side is the well expected lending vault (aggregator). This will allow users to lend in multiple pools — while capital will move efficiently in an autonomous way.

Markets will be based on the current logic of the actual Impermax app, with a much more appealing UI/UX, several useful tools to monitor pools APR, APY, users positions, among other key features. Also, included in the long list of key additions, will be: chains agnostic landing page, dark/light mode, multiple wallets support, search, filters and more.

We believe Impermax will become ‘’the’’ tool to optimize yield on top of concentrated liquidity DEXs.

In Ibex we trust

We are glad to finally announce the date of launch of our new token, IBEX, which will substitute in every function the old IMX.
IBEX will be claimable on Polygon and tradable on Quickswap starting from Friday, September 30th at 12pm UTC.

The IBEX contract addresses are the following:
Ethereum: 0xF655C8567E0f213e6C634CD2A68d992152161dC6
Polygon: 0xf972DACEd7C6b03223710C11413036D17eB298f6

A new beginning

The launch of IBEX is marking the beginning of a new era for Impermax. Almost 2 years have passed since the early stages of this venture, and many milestones were accomplished. From the successful launch of an innovative DeFi protocol to the creation of the Impermax community, until the latest IMX incident.

The IBEX token swap will bring a breath of fresh air to the project. With this token we’re going through a partial rebranding which embraces the Ibex meme initially born in our Discord community. IBEX is meant to be the token which will decentralize Impermax and will give its ownership back to its users. Meanwhile, the project name will remain Impermax and the long term vision will remain aligned with our original vision.

How to claim your tokens

How to claim the IBEX airdrop

Open the Impermax app on Polygon and make sure to clear the browser cache in order to use the latest version. If you’re eligible to claim an airdrop you will see the claim airdrop button in the top bar. Click on it and follow the instructions to claim your tokens.
For more info on the airdrop methodology check our previous article.

How to claim ETH airdrop

Open the Impermax app on Polygon and make sure to clear the browser cache in order to use the latest version. If you’re eligible to claim an airdrop you will see the claim airdrop button in the top bar. Click on it and follow the instructions to claim your tokens.
For more info on the airdrop methodology check our previous article.

How to claim your vested IBEX

Follow the same steps that you used to claim your vested IMX. Go to the claim page of the app on the Ethereum network.

IBEX tokenomics

IBEX has many things in common with IMX. It will still be the governance token that will control the Impermax DAO which has the ownership of the Impermax protocol. However there are some changes which will be applied in the short term, and more which will follow up in the future.

Safety module

Staking as it was known for IMX will be substituted by the safety module. Token holders will be able to deposit their IBEX in the safety module in order to earn a staking reward. The safety module will work like an insurance fund for Impermax.
The DAO will be able to vote to insure certain low risk pairs through the safety module. Note that by default all Impermax’s pairs will not be insured unless the DAO has voted specifically to insure that pair.
In case of bad debt in an insured pair, the tokens in the safety module will be slashed (up to a maximum amount) and used to repay the bad debt.
We expect the safety module to be released in the upcoming quarters.

Supply updates

The initial total supply of IBEX has been reduced to 87,250,000 by burning all the unclaimed airdrop.
Additionally, in the new token contract we have introduced the possibility to activate a 2% inflation rate after the initial 4-years emission schedule has ended. The DAO will be free to set the inflation rate anywhere in the range 0%-2%. The DAO will also be free to decide how these tokens will be utilized.

A new long term plan

While the token name change seems to be the only differentiation factor to what previously Impermax was, it actually is the foundation for a second phase of our venture.
We have established new guidelines to focus on large-scale, non-tech users adoption.
Our aim is to become a self-sufficient DAO over time. To offer simple, secure and high yield products to our users.
We will continue to innovate, integrate groundbreaking features and evolve our value proposition to fit market needs.
We are aware of the multiple months needed to achieve this vision, but one foot in front of the other and then one day we’ll look back at the mountain we’ve climbed.

Our new journey is not without challenges. Starting in the midst of a bear market, with capital and resources constraints, we have several key upgrades to implement in order to improve the protocol value proposition.
In the short term, a complete website and UI rebranding including the introduction of a lite version is mandatory to prepare for the mass adoption.
We will craft a multi-level strategy to widen our addressable market.
In this regard, the addition of our new business manager is very welcomed. Is it without mentioning that the team will expand furthermore as we move on.

One of our big advantages when it comes to the DeFi ecosystem is the commitment and level of interest from our community. We were surprised to acknowledge such support in these hard recent months. We want to thank you for your dedication, loyalty and we sincerely hope you will stay among the IBEXs crowd for the long run.

We cannot stress enough the fact that we are aware of the importance of community involvement. Consequently, every member who wants to directly or indirectly get part of the process in a constructive way is and will always be welcomed.

Like IBEXs, we shall evolve in herd, use the landscape to our advantage and constantly reassess our strategy in order to thrive in our environment.

It will take years to climb this mountain. Everything looks better with a view.

Best regards,

The Impermax team

Presentation letter by our new business manager (on Discord : Pareto | Impermax)

Dear IBEXes,

I am pleased to officially announce my involvement with the Impermax protocol.
I will be joining Simone and the incredible IBEX community.
I’ve been waiting for this journey to start for a couple of weeks now.
So much to say…! So much to do… Where to start?

First let me introduce myself. I’ve been in business and entrepreneurship all my life. I started quite young to manage people. At 17, I started a business — which I still run with 10 people under my supervision. At 21 years old, I became district supervisor for 12 employees at the federal Canadian 2011 census.

It’s conservative to say that I have experience with business development, growth, management and entrepreneurship.

Earlier this year, I randomly landed on Impermax page in early April 2022, when I noticed something. Something that had the potential to turn out incredible.

I’ve foreseen some adjustments that could be made in order to level-up the traction of the current Impermax value proposition. In addition, I realized that my experience and skills set were the missing part to give this protocol a fair shot at noticeable growth.

I approached Simone, and started to indirectly interview and question him, while presenting myself, to explore the potential of such association. Quickly, it became possible.

I felt like we could ‘’make it happen’’.

Afterwards, I drafted a document to highlight the flaws, the reachable upgrades and adjustments that I thought should be made to widen the protocol’s addressable market. In a short resume, I suggested among a list of others things that:

• We need to professionalize the UI/Website — design and display;
• It is mandatory to reduce the product offering exposed in the initial selection — which I judged confusing;
• We need to introduce a Lite Version that would include only the most liquid, popular pairs, with a simplified UI — I believe it can be the key game changer in the long run;
• We need to adopt a KISS (keep it stupid simple) approach in regard to everything users is related with (ie: overexpose easy investing solution, being able to understand in 10 seconds the page that you are lending on, comparing yields, rewards, history of pools very quickly shown, etc);
• We should be using a part of the protocols revenues to hire additional developers to grow the coding production capacity;
• We have to engage extensively in the stakeholders relationships;
• We have to update frequently the community and host AMAs — being transparent and staying open to criticisms : our best innovation proposals will come from protocol users and stakeholders who are familiar with our ecosystem;
• We should deploy a strategy to attract and KEEP people using our protocol so the revenue generation is steady and robust (spikes from new chains were enjoyable but did not last — we need sustainable capital). A pitfall in Impermax history was ‘’fly by night’’ usage. Consequently, a top priority in the long term is to deploy a strategy to retain capital. The steady cash-flow from our protocol will allow Impermax to hire additional people and at the end of the day, finance a virtuous circle of expansion.

Obviously, the ideas are way more developed in my draft, and will be subject to review/approval.

Still, these were some of the highlights mentioned to Simone that I believe to be critical to change the faith of this protocol.

It will be a long road with failures, mistakes, adjustments and lots of small victories.

I believe that we will need one year to revamp the UI, the website and integrate additional functions, while transforming the community and stakeholders general perception. Another year to ‘’go to market’’, integrate additional market niches, secure partnerships. We need to get our machine working toward increasing the TVL and prepare for the next bull market.

In conclusion, I strongly believe that Impermax proposition, our amazing and dedicated community, the current macro bear market (giving us probably 2 years before any material interest from markets participants to massively explore small coins proposal happen), Simone skill-set, my participation and a steady/smart work deployment are all the ingredients required to bring to the market a game changer adoption for Impermax (2.0).

Finally, I feel very grateful and lucky to be part of this soon-to-become epic DeFi success.

Yours, sincerely,

Frank

After the July IMX Incident we have decided to go through a token swap to substitute IMX with IBEX, a new token. With this operation our goal is to make everyone whole and regain the trust of our community to move toward a stronger beginning. The new token will be airdropped to previous holders of IMX using a snapshot taken before the incident happened. Additionally, we will refund lost ETH to IMX liquidity providers.

During the month of August we had to go through an extensive on-chain analysis to determine which addresses are eligible to receive IBEX and/or ETH, and in which amount. The analysis is finally complete and in this article we will disclose the results, along with the methodology that was used.

IBEX Refund Allocations

The initial 100M total supply has been split in 4 parts:

Liquid tokens: 51,75M

The initial IBEX circulating supply. These tokens will be distributed to users that were holding/lending/staking IMX at the time of the snapshot. Recipients will be able to claim IBEX through a MerkleDistributor contract (the generic contract used for airdrops).
Liquid IBEX allocations: https://docs.google.com/spreadsheets/d/1AQ_P41cKJ-TQ3ZzbrGSGKah1ncYO4xh7/edit#gid=303852352

Vested tokens: 34,78M

IMX that were vested before the incident will be converted to vested IBEX. The vesting schedule will resume from when it was paused, and will be the same that was used for IMX (the end date will be the same).
Vested IBEX allocations: https://docs.google.com/spreadsheets/d/1tCDLo6ZQYFsxDq9VuDrjSF6RRVBBz8j-/edit#gid=847231132

Manual transfers: 0,72M

For technical reasons, in some cases where the recipient address is a contract the IBEX tokens will be transferred manually:

• 272706 IBEX will be transferred to Umami
• 444340 IBEX will be transferred to DuckDao

Burnt tokens: 12,75M

All unclaimed IMX tokens that were left in the airdrop contract will be burnt. This will result in 12.75M tokens being burnt. Effectively, IBEX total supply will be 87.25M instead of 100M.

ETH Refund Allocations

IMX liquidity providers were affected more than anyone else during the incident: not only they lost the value of their IMX, but after the dump occurred they also lost the ETH (or other L1 token) liquidity that they were providing to the market. Since our objective with this relaunch is to compensate everyone, we will refund all the ETH liquidity held by IMX liquidity providers at the time of the snapshot.

After the incident we were able to recover 105.66 ETH from the hacker:

• 48.78 ETH have already been used to refund lenders on IMX pairs by clearing bad debt.
• 23.81 ETH will be used to refund liquidity providers and leveraged liquidity providers, by calculating the refund amount as the ETH exposure (ETH provided minus ETH debt, more info under Methodology).
• The remaining 33.07 ETH will be used to provide initial liquidity for IBEX to the market.

ETH refund allocations: https://docs.google.com/spreadsheets/d/1GrQ7C0SpHa3KbCgbHcLgTJ882Kdh_W4O/edit#gid=1673764457

Methodology

All on-chain analysis has been performed on a snapshot taken Jul 16th at 4:28 PM +UTC (Ethereum block 15154800). We analyzed the following sources to find eligible IBEX recipients:

IMX holders, lenders and stakers

Users who were holding, lending or staking (or holding xIMX) on any chain at the time of the snapshot will receive IBEX with a 1:1 ratio.
Users who bought IMX after the snapshot but before the incident was officially announced will also be counted in.

Users with pending IMX farming reward

Impermax users who earned some IMX by using the protocols but that hadn’t claimed all of their reward at the time of the snapshot will also receive IBEX with a 1:1 ratio.

Liquidity providers to IMX pairs

Users who were providing liquidity to any IMX pair on any chain will receive both ETH and IBEX:

• They will receive as much IBEX as the amount of IMX they were providing as liquidity at the time of the snapshot.
• They will receive as much ETH as the amount they were providing as liquidity to the IMX-ETH pair. Liquidity providers for IMX-AVAX, IMX-FTM, IMX-MOVR and IMX-QUICK will receive the ETH equivalent based on the conversion ratio. The following conversion ratios have been used: AVAX/ETH: 0.01356, FTM/ETH: 0.0001833, MOVR/ETH: 0.00853, QUICK/ETH: 0.04053.

Leveraged liquidity providers to IMX pairs

A similar methodology has been applied as the one used for regular liquidity providers, but with some changes:

• For both tokens provided we considered net balances. If a user was providing X IMX and had a debt of Y IMX, the balance considered was X minus Y.
• The total refund value was capped to the value of the equity. Let’s consider the case of a user farming IMX-ETH who had a positive net IMX balance but a negative net ETH balance. In this case the net balance considered for IMX would have been lowered to compensate for the negative ETH balance in such a way that the refund value would match the value of the equity.

A few hours ago a hacker was able to steal around 9M IMX from a few wallets controlled by the team. We have already taken precautions to minimize damage and have a recovery plan to get back on track. The protocol is safe and user’s funds are unaffected by the attack.

We’re asking to users to not trade IMX, and to IMX LPs to withdraw their liquidity from the market, until further announcement.

The incident

A few hours ago, around 5PM UTC of July 16th, a hacker was able to steal the private key of a few of the Impermax team’s wallets. We immediately noticed attack and did our best to transfer assets out of the affected wallets, but the hacker was still able to run away with most of the protocol owned liquidity and a large number of IMX.

There are the hacker’s addresses:
0x8e430d8388d44e30f8e612708d59cf9d832daac2
0x64e5ac2e59ccd85c02dede27d290f16d0ed5bf24
0x1d2677ed1b0815fab22368347723551a9dd1fb1b

Actions taken to minimize damage

After the hacker stole the funds, he didn’t sell IMX immediately. We knew that given the stolen amount, if he dumped all his tokens in the market the price would have gone near to 0. This would have drained liquidity and LPs would have been at great loss. Therefore, we’ve decided to frontrun the hacker by dumping a large number of tokens in the market before he could do anything. By doing this we were able to secure a part of the LPs funds that will be refunded to them in the coming weeks. Additionally, since the hacker was holding a large part of the market liquidity, through the frontrun we were also able to get some funds back from the hacker.

The protocol is safe

As expected, Impermax lending protocol is completely unaffected by this. If you were lending, borrowing, or leveraging on Impermax you can keep doing this as if nothing happened. This is because the attack was caused by a stolen private key, and not by a bug in the smart contracts. Since Impermax is permissionless and non-upgradable, these kind of attacks don’t affect what’s happening on the protocol.

Recovery plan

While the protocol is completely unaffected, the same cannot be said of the governance token. To solve this we’re planning to do a token swap which will be based on a snapshot taken before the incident happened. A new token will be created to replace IMX and will be distributed to previous IMX holders.

The snapshot will include everyone who was holding IMX in any possible way at that time (including LPing, lending, staking, etc). We will make sure that everyone receives what he’s owed.

The details of the token swap are yet to be defined. While this situation is certainly very sad and frustrating, at the same time we can take this as the chance to improve and restart stronger than ever. A token swap gives us the opportunity to improve previous flaws in the tokenomics (for instance ticker name, cross-chain compatibility, farming reward distribution etc..). We’re currently having an open discussion with the community in our discord in the #token-swap channel. If you have any idea or suggestion you’re invited to participate!

The long-awaited Impermax factory V2 is now ready and live on all chains. However, this new update covers much more than that! In this announcement we want to present the idea of Impermax’s future architecture and some exciting improvements, including:

• Customizable factory smart contracts for any and all pairs!
• More efficient, faster, and more flexible interest rates!
• Removal of initial borrow fees!
• Introduction of liquidation fees!

All these will add up to a much more powerful and flexible DeFi lend/borrow engine!

What is an Impermax factory?

The factory is the smart contract that is used to create new pairs on Impermax. It is extremely important because it contains all the core logic of the Impermax engine. The smart contracts containing the factory logic are what allows Impermax to remain permissionless and non-upgradeable. These are the main features that makes the protocol safe for the users: no one, not even the admin, can maliciously or by mistake introduce a bug or act maliciously against the smart contracts. For a more technical explanation about the factory, please check out Impermax whitepaper.

Moving to a multi-factory future

Initially, Impermax was designed to only need a single factory for each chain. That factory was then used to deploy all the pairs on its chain. However, next-gen AMMs such as Uniswap V3 are requiring updates to be made to the original Impermax factory, but due to the non-upgradability principle we cannot just upgrade the old contracts. The existence of multiple factories in the same chain will allow us to keep Impermax updated and introduce new features while not compromising the old pairs. Another benefit of having multiple factories is that it will create greater decentralization and growth for the Impermax ecosystem. For instance a unique factory could be deployed for or by a specific partner in order to meet specific requirements or split protocol fees in exchange of other benefits.

What’s featured in Impermax factory V2?

• Updated interest rate model: the newest factory will feature the most up to date interest rate model with KINK_RATE_MULTIPLIER set to 2 (the same model already successfully tested on Avalanche). The parameters of this model have proven to be optimal for finding the right interest rate based on market supply and demand.
• Removal of the borrow fee: the initial borrow fee paid on opening of a leveraged position has been removed to further incentivize leveraged yield farmers.
• Faster incentives correction: the speed at which the interest rate adjusts itself can now be set at an even faster level in order to find the right incentives when the market dynamics rapidly change.
• Liquidation fee: an additional protocol fee on liquidation can now be set individually for each pair. This is an additional revenue stream, which at the same time makes Impermax safer for lenders. Usually lenders are at risk during periods of high volatility which potentially lead to liquidation cascade events. Thanks to the liquidation fee, during these periods the protocol will now generate more revenues than usual. These additional revenues will compensate for the higher risk. Additionally, on higher risk pairs a higher liquidation fee can be set in order to decrease the risk for lenders.

Next steps

This was a major update that required rebuilding the whole UI from the ground up (even if no functionality change is noticeable to the end user yet). As a consequence we had to hold up other updates, partnership and addition of new pairs for a few weeks.

Now the priority is to recover the lost work. We’ll restart reviving Impermax markets by releasing the regular updates such as addition of new pairs, AMMs, partnerships, analytic tools, and new incentives (Polygon LM 2.0).

Planning for the worst

When planning for the next few months, something we can’t ignore is the recent bearish price action of crypto markets. We can’t predict whether this is just a temporary phase or if it will be prolonged for several months, but in each case we should be prepared for the worst.

What is sure is that no matter where the market goes, we’ll still be here and we’ll keep building! We have a long list of new features and updates that we’re working on for the protocol, and we have long term goals. Right now the main focus is on simplifying the user experience and making Impermax easier and accessible to everyone.

Keep in mind that the bear market is usually that time where quality projects differentiate themselves from the copycats who are just looking for quick bucks during bull markets. Once this ends, we’ll be back stronger than ever!

It’s done, after many requests Impermax is finally live on Fantom! And it’s launching in big style, enabling leveraged yield farming for the first time for Andre Cronje new DEX: Solidly. Impermax is integrating Solidly boosted rewards through Solidex, a yield optimizer for Solidly.

There are 3 fresh innovations that Impermax is bringing to Fantom:

• Autocompounder for Solidly and Solidex
• Leveraged Yield Farming for Solidly and Solidex
• Single Sided Liquidity Providing to Solidly

Autocompounder for Solidly and Solidex

Solidly is a DEX on Fantom which incentivizes liquidity providing through SOLID token. Solidex is a yield optimizer for Solidly that offers users a boosted SOLID reward and distributes its own token, SEX, on top of it.

We have created an autocopounder for Solidex. This means that by depositing your Solidly LP tokens on Impermax they will be automatically deposited on Solidex and all the SOLID and SEX reward you earn will be compounded to your LP balance. Impermax charges only a 1% fee for the auto compounding service which is used to incentivize permissionless auto compounding by the contract.

By using Impermax as autocompounder you can expect to earn the APR in gray, the one for 1x leverage.

*Notice that in the first few days APRs may be very volatile on Solidly due to market fluctuations and variable boosts.

Leveraged Yield Farming for Solidly and Solidex

Impermax’s main feature is leveraged yield farming. If you’re already a liquidity provider for Solidly who is farming on Solidex, you can leverage your LP tokens on Impermax instead in order to multiply your staking APR!

By leveraging on Impermax you will get all the auto-compounding benefits mentioned above. On top of that, you will be able to use your LPs as collateral to take a loan to increase your position size.

At first, Impermax will support only Solidly volatile pairs. In particular, the following pairs will be supported at first:

• FTM-TOMB
• FTM-FRAX
• USDC-OXD
• FTM-IB
• FTM-HND
• FTM-SCREAM
• FTM-SEX
• USDC-SYN

Single Sided Liquidity Providing to Solidly

If you still want to benefit from the Solidly APR craze but you don’t feel comfortable with the risks involved and the exposure to impermanent loss, Impermax has the perfect solution for you! By supplying your tokens on Impermax you can earn a return with no risk of impermanent loss. Just select any of the available pairs, go to the lending section and lend your tokens to yield farmers who want to leverage their position in that pair.

Impermax is also partnering with existing yield aggregating protocols on Fantom to help drive liquidity to the lending side.

At first, the tokens available for lending on Fantom will be the following:

• FTM
• TOMB
• USDC
• FRAX
• OXD
• IB
• HND
• SCREAM
• SEX
• SYN

Start using Impermax now!

Impermax is already live at the following link

https://fantom.impermax.finance/

In order to ask for support or discuss strategies with other yield farmers feel free to join our community on Discord and Telegram.

Website: https://www.impermax.finance/
Discord https://discord.com/invite/XN739EgG4X
Telegram: https://t.me/ImpermaxFinance
Twitter: https://twitter.com/ImpermaxFinance
Medium: https://impermax.medium.com/

In the last few months there were many discussions in our community channels around IMX tokenomics and how the increase in protocol revenues could be reflected in the token price. We’ve heard a lot of requests and feedback. Based on that, today we’re excited to introduce 3 new updates!

Protocol Owned Liquidity

Protocol owned liquidity has many economic advantages that help strengthen the token price, in particular:

• deeper liquidity for traders
• lower circulating supply when price decreases
• higher treasury reserves when price increases
• guarantee of future liquidity

For these reasons, and in order to own a diverse set of treasury assets, we have decided to invest a percentage of the protocol profits (up to 50%) in IMX liquidity.

We are also initializing a 1,000,000 IMX Liquidity Reserve Fund from the Protocol Growth and Development assets in order to create the LP tokens. Initially, the process to obtain liquidity will be the following:

1. Convert protocol profits to ETH.
2. Transfer ETH to the Protocol Owned Liquidity address on Ethereum.
3. Pair ETH with the IMX from the Liquidity Reserve Fund in order to add liquidity to the IMX/ETH Uniswap V2 pair.

In future we may change the process by adding new liquidity pairs or by introducing new mechanics such as bonding.

The Protocol Owned Liquidity will be kept at the address: 0x43AB29158297Dcb45D9B4f8d07450A5D5271e442. You can see the details of the liquidity owned on Debank:
https://debank.com/profile/0x43ab29158297dcb45d9b4f8d07450a5d5271e442

Optimized Staking Mechanics

The whole idea behind IMX staking is that it should correlate the IMX price with the protocol generated revenues. Buybacks create buy pressure. The lower is the price, the more impact they have on the market. With a low token price the staking APR becomes higher since more IMX are being bought back, and this incentivizes holders to hold their tokens. This mechanism will eventually create a floor price.

However, despite the protocol revenues increasing by 10x in the last 3 months, the token price has performed poorly recently. The main problem is that the tokens bought from the market are distributed to stakers during the following 90 days (window length). This means that the staking APR is usually stable, and it takes more time for it to grow when the price gets lower. The consequence is that incentives to hold the token are “delayed”. If the IMX price drops quickly, the current mechanism may not act fast enough on the staking APR to provide support.

For this reason we are reducing the window length from 90 days to 30 days. This will result in an immediate increase in the staking APR since more than 500,000 IMX were purchased last month.

Multichain Staking

This was probably one the most requested features by the community, but now it’s finally live! The main xIMX staking contract will remain on Ethereum, however now xIMX can be bridged and purchased on different chains. In particular, the first chain where you can buy xIMX is Polygon through the IMX/xIMX pair on Uniswap.

xIMX Polygon contract address:
0xff52775de813d060aa5854657055fb19b3a3dda5

Holding xIMX on Polygon is equivalent to holding it on Ethereum. Therefore, just by holding it on Polygon you can benefit from the protocol revenues distributed on Ethereum.

The main challenge with bringing xIMX cross-chain was getting enough liquidity for it on exchanges. Usually the cost of slippage and trading fees on a normal AMM are too high to justify the purchase of a staked token. However, as suggested by @PhiMarHal, Uniswap V3 solves this problem. Thanks to the recent launch of Uniswap on Polygon we were able to create the IMX/xIMX trading pair with concentrated liquidity and low trading fees. This is a great opportunity for 2 categories of users:

• IMX holders on Polygon can already purchase xIMX from Uniswap for a low premium. IMX holders on other chains can bridge their IMX to Polygon through cBridge and purchase xIMX there. This benefits everyone who can’t afford to pay Ethereum fees for staking.
• The IMX/xIMX pair also creates an arbitrage opportunity. IMX stakers on Ethereum can bridge their xIMX to Polygon and sell them there for a premium. xIMX holders can also use it to provide liquidity to Uniswap and earn an additional yield on it with low impermanent loss.