Research Summary
Voltz, a non-custodial automated market maker for Interest Rate Swaps (IRS), uses a concentrated liquidity virtual AMM (CL-vAMM) for price discovery. The protocol has seen significant growth, with a record-breaking $5.13B volume week in late March to early April 2023. Voltz V2 introduces a single margin account that any exchange can plug into, acting as a non-custodial clearing house for any derivative asset, providing cross-margining benefits across different instruments and separate exchanges.
Actionable Insights
- Voltz’s growth: The protocol has seen significant growth, with a record-breaking $5.13B volume week in late March to early April 2023.
- Voltz V2: The new version introduces a single margin account that any exchange can plug into, acting as a non-custodial clearing house for any derivative asset.
- Benefits: It provides cross-margining benefits across different instruments and separate exchanges.
- Capital efficiency: Utilizing a CL-vAMM model allows Voltz to be up to 3,000x more capital efficient than other interest rate swap models.
- Single asset LPing: Interest payments are made in a single token, enabling LPs to only deposit a single asset when providing liquidity for both fixed and variable interest rate traders.
