Impermax is a decentralized protocol for leveraged yield farming.
Impermax is a decentralized lending protocol for leveraged yield farming. Borrowers deposit liquidity provider (LP) tokens as collateral and borrow funds to leverage their LP token exposure. Lenders supply tokens to any lending pool to earn borrowers' interest. Impermax is built around two key innovations: isolated lending pools and the collateralization model. The isolated pools mean a borrower's position in any pool does not impact other pools. The collateralization model uses a parameter called safety margin (instead of the typical loan-to-value method) to reduce the required over-collateralization required, thus allowing for much higher leverage.
Impermax collects 20% of all interest income earned on the platform. There is also a 0.1% flat borrowing fee on each loan that also distributes 20% to the protocol.
You can make money by depositing LP tokens on Impermax to earn leveraged yield farming rewards. Lenders can deposit assets to accrue borrowers' interest. IMX holders can stake in the platform in return for sIMX to earn 80% of all interest paid by borrowers.