Pay-off Curve

Asymptotic Power Curves

The Long pay-off value:

The Short pay-off value:

The Liquidity pay-off value:

$$\Omega(k,x)=R-\Phi(k,x)-\Psi(k,x)$$

Asymptotic Power Curves is our innovative Pay-off Curve design that makes the vision of Derion feasible in the first place. Thanks to the Asymptotic Power Curves, Derion is able to achieve:

• NO liquidation at all;

• Everlasting perpetual future market for all market circumstances;

• Infinite liquidity, even without liquidity providers;

• Liquidity elasticity: Impermanent loss and gain, with asymptotic behavior at infinity;

• Leverage elasticity: Leverage is automatically and continuously capped upon market state transitions and price volatility.

• Continuous interest rate: to compensate LPs and help them reduce the risk of impermanent loss