Margin Pools: The MCPMM Model

Hey Sundae community,

If you've been following our journey, you might recall our Margin Pool Catalyst proposal—a proposal aimed at unlocking leveraged trading right in the heart of SundaeSwap. For those who missed it, check out the original pitch here. It's all about tackling Cardano's concurrency quirks while boosting capital efficiency in our CPMM pools.

To crack this nut, we brought in Georgios Tsoumas, a sharp mathematician with a knack for DeFi mechanics. Over the past months, he's dug deep into the math, modeling risks, incentives, and edge cases. The result? We've found a solution.

Picture this: Your go-to SundaeSwap pool doesn't just handle swaps—it smartly lends out some of its liquidity to fuel leveraged positions. You deposit collateral and borrow extra buying power (safely amplified) without messing up regular swaps or the pool's balance.

Want the proofs, the pudding, the nitty-gritty?

Here’s Georgios's whitepaper, The MCPMM Model: Download it here 

Cheers,  

The Sundae Labs Team 🍨