MMF
Market Maker Fund
Market Maker Fund (MMF) is a decentralized single-asset yield farming products issued by TiTi Protocol with PAV as the source of dividends. MMF aims to raise more market-making funds and increase market-making depth to further reduce user transaction slippage and enhance the protocol anti-risk ability.
In order to enhance protocol risk-proof ability and further reduce trading slippage, TiTi Market Maker Fund mechanism( herein after referred to as MMF) is created. MMF will raise more market-making funds by incentive Market Maker with PAV.
For one thing, compared with the LP mining model, MMF participants do not need to bear the risk of Impermanent Loss by holding a certain token. Impermanent Loss will reduce their participation willingness.In terms of use of funds, MMF is more similar to traditional market makers issuing funds to raise money. Furthermore, MMF is free of punishment and users can choose to participate or exit from the MMF at any time. MMF will automatically divide profits according to the proportion of individual funds.
Besides, in the process of marketing make, the profit generated by the user is raised immediately. All the users' funds will enter the M-AMM and be used for market-making in TiTi Protocol.
The USDC balance X in the market-making fund pool is:
It indicates that the USDC in the market-making pool will consist of two parts. One part is PRV, Xreserve .The other part is the Market Maker Fund, Xmmf.
RR should be:
Slippagemax evolved to:
It can be seen from the formula that due to MMF, Slippagemax will be further reduced, making the Protocol more capable of dealing with risks. A key parameter can be defined as: MMF's ratio against TiUSD circulation (herein after referred to as FR) :
Therefore, MMF increases the depth of the M-AMM, reduces transaction slippage and further improves user experience. For MMF participants, it is a risk-free investment subject. TiUSD holders, MMF participants, and the Protocol itself can achieve a win-win situation.
Last modified 11mo ago