Uniquely Beneficial

Integrated Liquidity Markets are crafted to automate DeFi growth strategies in just a few clicks meaning lower fees and a more seamless user experience.

Benefits of ILMs

ILMs are liquidationless. When executing a DeFi strategy that involves lending/borrowing of other assets, users need to be mindful of their health factor and liquidation risk. If values of collateral change, a user may be liquidated to repay any loans that they’ve taken out.

Due to the automated aspect of ILMs, users do not need to worry about these fluctuations and therefore do not need to actively manage their position. With ILMs there are targeted leverage ratios, and whenever collateral fluctuates to deviate from those targets, ILMs automatically rebalance themselves aka buy/sell collateral to avoid liquidations and stay within their leverage bands.

On top of this, Seamless Protocol does not charge a streaming or management fee to execute ILM strategies. Other platforms charge their users to use these automated strategies, but Seamless believes in a transparent fee structure to ensure users maximize their profits.

Additionally, for yield related ILM strategies, any yield is auto-compounded back into the strategy leading to greater gains for users in the long run.

Auto Compounding - Baked into ILM logic is the concept of auto compounding. Gains earned from magnified staking fee rewards are incorporated back into a user's ILM position meaning gains compound right from the start.

Auto Rebalancing - Since ILM strategies are managed by smart contracts, rebalancing happens automatically, meaning users do not need to be actively managing their debt positions to stay within targeted leverage ratios.

No Hidden Fees - Fees of ILMs are distributed across all participants, lowering individual costs and not impacting a user's broader P/L performance.

High Efficiency - Borrowing strategies are added by the community and coded in smart contracts. Because ILMs are directly integrated with Seamless' lendable asset pool, the strategies utilize capital at preferential rates for more optimal returns.