A Derivative for AMMs

DeFi is evolving with various derivative layers and AMMs are building new smart contract. BomberSwap is a DeFi platform that creates a treasury layer on top of existing AMM platforms by using LPT’s as a collateral, which is a decentralized receipt of the user’s funds in an AMM pool. BomberSwap provides the first-ever debt-free liquidity provision system! The platform provides liquidity to AMM LPTs and issues (BOMB) in the form of a minted token. The platform unlocks the LPTs once the BOMB is returned, irrespective of time. The user is never at risk given that BomberSwap does not have a Liquidation Engine!

• Unlock LPT Liquidity: LPTs are the ideal collateral. They are great for funding but unsuitable for trading. Unbound will collateralize LPTs via smart contracts, which provide additional liquidity, without compromising on security.

• Mint by locking LPTs: Contracts will lock LPTs and mint BOMB

• BomberSwap does not have a liquidation engine. The smart contracts unlock collaterals whenever the minted BOMB is returned. What this imply is that when you mint BOMB, this does not create a debt position where: a. Users do not lose any collateral amount b. BomberSwap does not charge any penalty amount if the value of collateral goes below a certain amount.

• SAFU fund: In case of an exceptionally steep decline in collateral value, the SAFU fund is there to absorb some or all of the losses without liquidating the user collateral. More details in the following sections.