FNX Market Making

Market making is an important and often unseen part of DeFi. We are partnering with Ichi who will be deploying their innovative Yield IQ vaults that allows users to deposit liquidity with a single blue-chip asset (USDB for e.g). The Ichi IQ FNX vaults operate to provide price stability whilst ensuring optimal liquidity depth during trading. This means ensuring FNX liquidity is organised in a way to reduce volatility whilst minimising price impact from selling

If the price of FNX decreases, the deposited asset is sold to buy more FNX to support price and reduce volatility. When FNX increases in value, FNX is sold to acquire more of the blue-chip deposit. This is great for users as they will experience less impermanent loss on the deposited blue-chip asset — and generally demonstrates how Ichi creates a “liquidity wall” that enhances ecosystem resilience through FNX price stability.