For Stablecoin Issuers

Stablecoins play a crucial role in the decentralized finance (DeFi) ecosystem, offering liquidity, trading pairs, and hedging tools. However, maintaining stability and liquidity for these assets can be challenging, especially during periods of high volatility or low liquidity. Gemnify addresses these challenges by providing a dedicated liquidity pool solution that not only ensures price stability but also enhances trading efficiency, mitigates risks, and facilitates seamless swaps and leveraged positions. Through its innovative approach, Gemnify empowers stablecoin issuers with effective tools to manage liquidity, support hedging, and maintain stable exchange rates—all while maximizing the potential for returns and minimizing exposure to market fluctuations.

How Gemnify can help

• Proactive Market Maker (PMM):

  Designed to minimize slippage by adjusting liquidity dynamically according to market conditions and the demand/supply balance, providing a more stable trading experience​. At the same time, AMM is prone to higher slippage, especially for large trades or in low-liquidity pools. This happens because AMMs use a constant product formula that automatically adjusts prices based on the size of the transaction relative to the liquidity pool. As a result, large trades can significantly alter the token price.

  With Gemnify's 'zero price impact' feature and price range control, when a stablecoin depegs and its price falls below $1, users can find better trading deal on our platform. Additionally, selling stablecoins here won't further drive down the price or contribute to a downward spiral in the market.

• Price Range Control:

  Gemnify only supports trades occurred within a set price range based on Oracle prices. To better protect Gemnify's users, the protocol halts order execution and position openings if the token price spikes or drops beyond a 4% range from $1. For example, to open a long position on DAI, a limit price below 0.9600 won't be accepted; for a short position, a limit price above 1.0400 won't be accepted. This efficiently mitigating spot selling pressure while maintaining stable market prices, thereby supporting overall price stability.

• Hedging (Coming Soon):

  Although swaps are temporarily paused, hedging positions remain active. This enables hedging users (especially whales who hold large position) to continue earning returns or mitigating losses without selling spot positions in the market, thereby further enhancing price stability.

• Capital Efficiency:

  Gemnify allows for open interest (OI) to reach up to 20 times the total value locked (TVL), with hedging leverage extending up to 1000x. This not only contributes to better liquidity, but also helps maintain price stability as it supports a larger volume of trading activity without causing significant price movements. It is beneficial in absorbing market pressures, reducing volatility, and creating more efficient trading environments.