Impermax V3 Core: everything you need to know

After 2 years of development we’re finally getting ready for the launch! Impermax V3 is the ultimate leveraged yield farming protocol. Built on a strong foundation, it inherits most of its code, architecture and safety from its predecessor, while innovating and improving it. Most importantly, Impermax V3 introduces a new design that allows us to support leveraged yield farming for virtually any DEX or ALM.

Features

Impermax V3 introduces a few key features:

1. Support for concentrated liquidity DEXes… and not only that! Impermax V3 uses a modular collateralization model that is theoretically adaptable to any form of LPing to a trading pair. Here’s a list of a few DEXes that will be supported (each will require its own module):
   - Uniswap V2, V3 and V4
   - Aerodrome Slipstream
   - Algebra
   - Curve
   - Balancer
   - Automated Liqudity Managers (Gamma, Arrakis, etc..)
2. Bad debt management: After 4 years of activity we can say that positions going underwater is a rare event on Impermax. However, Impermax V2 was missing a system to automatically handle bad debt. V3 introduces a new bad debt rebalancing system that prevents underwater position by socializing the bad debt in the borrowable pools.
3. Introduction of debt ceilings as an additional risk-mitigation feature. Debt ceilings will lower the risk of cascading liquidations for tokens where most of the liquidity is deposited on Impermax.
4. Custom oracles: Impermax V3 will support both the Chainlink oracle and the TWAP oracle in order to accommodate for the best safety in any scenario.

How it works

Under the hood, Impermax V3 is just a very advanced evolution of Impermax V2. Devs familiar with the old codebase will recognize that a lot of smart contracts are mostly the same. This is not by accident or laziness. Impermax V2 has proved itself to be one of the safest protocols in DeFi. Its safety features are derived not only by the lack of bugs, but also by its simple design. For this reason, we’ve decided to inherit as much of the safety features of Impermax V2 as possible. We’ve done that by doing as few changes as possible to the old code, only what was necessary.

The main design innovation of Impermax V3 is the introduction of the concept of NFTLP. Impermax V1 and V2 only supported LP tokens as collateral. The NFTLP is a new type of collateral that was created to fix this issue.

A NFTLP is an ERC721 contract that can represent any kind of on-chain paired liquidity. It can represent a Uniswap V2/V3/V4 position, an Algebra position, a Curve position, an ALM etc… The only requirement is that it implements the NFTLP interface.

In Impermax V3 most of the logic behind the collateralization model is handled by the NFTLP. This modular approach allows the Impermax Core to support virtually any DEX by just creating new NFTLP integrations.

The NFTLP should provide:

• The price oracle
• A description of how the position’s liquidity will change at different price levels.

The Impermax V3 core operates under the assumption that the NFTLP is providing correct information.

Audit

Let us iterate this again: while developing Impermax V3, security was our top priority. We’ve spent 6 figures to hire top DeFi auditing firm, leaving no stone unturned. Impermax V3 is currently being audited by Guardian Audit and Bail Security. Both are serious and reputable auditing firms that are making sure no edge scenario remains unchecked.

Licensed code

To protect the project from malicious forks, Impermax V3 smart contracts are covered by the Business Source License (BUSL). It will be illegal to fork Impermax V3 without authorization within the first 4 years of activity.

*The Impermax V3 github repository will be opened to the public as soon as all audits are completed.