Solving Liquidity Fractioning

Last updated 6 months ago

PIO V1 enables the same high liquidity deployment across all it's deployed EVM chain, unlocking horizontal scalability.

Traditionally, DeFi protocols have struggled with the issue of liquidity fractioning, where liquidity is scattered across multiple chains, leading to reduced efficiency and suboptimal user experiences.
This fragmentation has hindered the growth and adoption of DeFi, as users are often forced to navigate between different chains to access the desired liquidity.
The Bilateral OTC RFQ Architecture incorporates individual signature verification for each trade.
By enabling one-to-one matching, we eliminate the need for complex liquidity pooling and ensure optimal utilization of resources.

PIO V1's consistent liquidity across all deployed chains can be attributed to its multi-faceted approach. Let's dive into the key factors that enable PIO V1 to achieve this remarkable feat:

PIO V1 bridges liquidity directly from centralized exchanges.
By establishing secure and efficient bridges, our users can tap into the vast liquidity pools available on these exchanges and seamlessly channel them into the DeFi ecosystem.
This direct bridging mechanism ensures a constant flow of liquidity, eliminating the need for reliance on fragmented liquidity sources.

PIO V1 introduces Just-in-Time (JIT) Liquidity, which optimizes the utilization of liquidity by hedgers. With JIT Liquidity, hedgers are only required to lock liquidity when they answer a Request for Quote (RFQ).
This approach minimizes the idle locking of liquidity, allowing hedgers to efficiently manage their capital and respond to market demands in real time.

PIO V1's architecture is designed to streamline the rebalancing and settlement process for hedgers. By locking only the Initial Margin (IM) and Debit Factor (DF), which represent a fraction of the total notional, hedgers can easily settle their open trades and collect realized profits (Upnl).
This flexibility enables hedgers to rebalance their positions across different chains effortlessly, ensuring optimal liquidity distribution and risk management.

To ensure consistent and reliable pricing across all deployed chains, PIO V1 uses an oracle-based price-securing mechanism.
By leveraging off-chain price oracles, PIO V1 eliminates price discrepancies between chains, providing a unified and trustworthy pricing framework. This approach instills confidence in users and promotes a seamless trading experience across different networks.

Last updated 6 months ago

PIO V1 enables the same high liquidity deployment across all it's deployed EVM chain, unlocking horizontal scalability.

Traditionally, DeFi protocols have struggled with the issue of liquidity fractioning, where liquidity is scattered across multiple chains, leading to reduced efficiency and suboptimal user experiences.
This fragmentation has hindered the growth and adoption of DeFi, as users are often forced to navigate between different chains to access the desired liquidity.
The Bilateral OTC RFQ Architecture incorporates individual signature verification for each trade.
By enabling one-to-one matching, we eliminate the need for complex liquidity pooling and ensure optimal utilization of resources.

PIO V1's consistent liquidity across all deployed chains can be attributed to its multi-faceted approach. Let's dive into the key factors that enable PIO V1 to achieve this remarkable feat:

PIO V1 bridges liquidity directly from centralized exchanges.
By establishing secure and efficient bridges, our users can tap into the vast liquidity pools available on these exchanges and seamlessly channel them into the DeFi ecosystem.
This direct bridging mechanism ensures a constant flow of liquidity, eliminating the need for reliance on fragmented liquidity sources.

PIO V1 introduces Just-in-Time (JIT) Liquidity, which optimizes the utilization of liquidity by hedgers. With JIT Liquidity, hedgers are only required to lock liquidity when they answer a Request for Quote (RFQ).
This approach minimizes the idle locking of liquidity, allowing hedgers to efficiently manage their capital and respond to market demands in real time.

PIO V1's architecture is designed to streamline the rebalancing and settlement process for hedgers. By locking only the Initial Margin (IM) and Debit Factor (DF), which represent a fraction of the total notional, hedgers can easily settle their open trades and collect realized profits (Upnl).
This flexibility enables hedgers to rebalance their positions across different chains effortlessly, ensuring optimal liquidity distribution and risk management.

To ensure consistent and reliable pricing across all deployed chains, PIO V1 uses an oracle-based price-securing mechanism.
By leveraging off-chain price oracles, PIO V1 eliminates price discrepancies between chains, providing a unified and trustworthy pricing framework. This approach instills confidence in users and promotes a seamless trading experience across different networks.