# Roadmap Infinity maintains a multi-product roadmap, focused on the ‘fixed income side’ of crypto financial markets. Once benchmark (cash) interest rates have been established, we will make available derivatives (rate-based swaps) to enforce no arbitrage mechanics and credit markets to support on-chain debt issuance, alongside the support of tokenized real world assets enabling the seamless convergence between fiat and crypto ecosystems. ## Product Offerings * Floating rate cash market (live) * Fixed rate cash market (live) * Interest rate swap (pending) * Cross currency swap (pending) * Cross currency basis swap (pending) * Credit swaps (pending) * And more… ## Collateral Support * Ethereum based, w/ yield-bearing tokens * US dollar based, w/ yield-bearing tokens * Off exchange settlement to support native Bitcoin, and Fiat instruments such as: * Government Bonds * Corporate Bonds * Money Market Funds * Real Estate * And more… ### Off-Chain Compute Infinity needs at least 20mm Transactions per Second to meet its minimum requirements for computation. While it doesn't need this throughput per-se, it broadly requires this amount of compute to risk manage outstanding risk positions and provide a robust order book experience. There are multiple aspects to the path-to-decentralization, for example, the censorship resistance and verifiable compute. To this effect, we have mapped out hybrid cloud-computing configurations, are separately exploring zk compute/proofs, and are working with some L2s on experimental hybrid solutions in the near-term. Reach out if you're interested to work on this with us. # Fees & User Types {% hint style="warning" %} 1 Nov 2023: Note that Fees & User Types are still undergoing testing and have not yet been deployed. In the meantime, fees are set to zero (0). {% endhint %} Users are classified into two types of users for the purposes of Fees: **Regular Users**, and **Whales**. There are three types of fees: **Transaction Fees**, **Carry Fees**, and **Collateral Risk Fees**. Transaction Fees are paid upon executing a trade with Carry and Collateral Risk Fees paid on a daily basis at approximately 2pm UTC. ## Transaction Fees The following Maker and Taker Transaction Fees, or Base Fees, are for a 1yr fixed rate position. ### Regular Users
| Level | # Tokens | Assets (USD) | 30-day Volume (USD) | Maker Fee | Taker Fee |
|---|---|---|---|---|---|
| Level 1 | 200,000 | 100,000 | 5,000,000 | 0.080% | 0.100% |
| Level 2 | 2,000,000 | 100,000 | 5,000,000 | 0.070% | 0.090% |
| Level 3 | 5,000,000 | 100,000 | 5,000,000 | 0.060% | 0.080% |
| Level 4 | 20,000,000 | 100,000 | 5,000,000 | 0.050% | 0.070% |
| Level 5 | 200,000,000 | 100,000 | 5,000,000 | 0.040% | 0.060% |
| Level | # Tokens | Assets (USD) | 30-day Volume (USD) | Maker Fee | Taker Fee |
|---|---|---|---|---|---|
| VIP 1 | - | 100,000 | 10,000,000 | 0.020% | 0.050% |
| VIP 2 | - | 500,000 | 20,000,000 | 0.015% | 0.050% |
| VIP 3 | - | 2,000,000 | 50,000,000 | 0.010% | 0.050% |
| VIP 4 | - | 5,000,000 | 100,000,000 | 0.005% | 0.050% |
| VIP 5 | - | 10,000,000 | 200,000,000 | 0.000% | 0.050% |
| VIP 6 | - | 20,000,000 | 500,000,000 | - 0.010% | 0.050% |
| VIP 7 | - | 50,000,000 | 1,000,000,000 | - 0.015% | 0.050% |
| VIP 8 | - | 100,000,000 | 10,000,000,000 | - 0.020% | 0.050% |
# User Accounts Users must supply eligible tokens and collateral (denoted, "[Eligible Collateral](/deposits-and-withdrawals/eligible-collateral)) to Infinity before you initiate a lend or borrow position. All eligible collateral supplied to Infinity is locked in a smart contract which is public, open source, formally verified and audited by independent third party auditors. * You can’t withdraw ‘lent’ funds on-demand (as with Aave/Compound), but are subject to market forces, e.g. liquidity from the ‘other side’, in order to withdraw lent funds. * You can’t (yet) export a tokenised version of your lending position (for example, the aToken or cToken equivalent on Aave and Compound, respectively), however you can use lending positions as collateral within Infinity. Once your wallet is connected with Infinity, collateral is transferred to Infinity’s Smart Contract over a two step process, from Wallet to Current Account, then from Current Account to Trading Account.
Note: Diagram from our V1 protocol. We have not yet unlocked multiple, isolated, Trading Accounts but will do so in due course.
| Step | Feature | Description |
|---|---|---|
| Order Form | Side | Select Lend or Borrow |
| Order Form | Token | Select token |
| Order Form | Size | Input quantity |
| Order Form | Max Size | Maximum quantity user could Lend or Borrow, based on your Trading Account |
| Order Form | Rate | Last traded rate |
| Order Form | Max Slippage | Select tolerance from Rate you are willing to accept to fill Size (e.g. Lend at Rate between 2.20% to 2.30%). |
| Order Form | Order Type | Select Market or Limit order |
| Order Form | Maturity | Select floating or fixed expiry contract |
| Confirm Market Order | Estimated Fill Amount | Estimated quantity to be executed based on the Rate & Max Slippage (e.g. if the Max Slippage isn’t wide enough, Estimated Fill Amount would be less than Size) |
| Confirm Market Order | Estimated Avg. Rate | Estimated average rate calculates the weighted average interest rate based on Size, from the outstanding Limit orders in the market. |
| Market Order Placed | Fill Size | Actual quantity of tokens you have lent/borrowed to/from the market. |
| Market Order Placed | Avg Rate | Weighted average interest rate of your lend/borrow position. |
| Market Order Placed | Current Status | Done: order was fully filled Partially filled: order was partially filled, with remainder onbook or auto cancelled Canceled: order was cancelled |
# Position Monitoring ## Position Monitoring Once you have open (lending and/or borrowing) positions on Infinity, you can view these in various locations. ### Lend & Borrow page Under the "Lend & Borrow" page, "Your Positions" is shown for the token selected (e.g. ETH), with the notional position shown per contract (floating, fixed maturity), along with your net positions per token shown at the top. Note: notional amounts with a positive figure denotes a net lending position, whereas a negative figure denotes a net borrowing position.
Position monitoring on the "Lend & Borrow" page.
Position monitoring on the "Trade" page.
# Fixed Rate Markets Fixed Rate Markets enable both Lenders and Borrowers to lock in rates for a fixed period of time. Interest rate payments are settled on a daily basis. With the seamless ability to trade across both Floating and Fixed Rates, traders can update these levels in real-time depending on price movements across other markets. With a portfolio-margined risk system, this ensures fluidity of capital across the entire yield curve, and across all currencies. | Term | Definition | | ---------- | --------------------------------------------------- | | Direction | Lend / Borrow | | Maturity | Various (1D, 2D, 1W, etc...) | | Principal | Notional or Size of Trade | | Rate | Interest Rate expressed on a per-annum basis, *cpn* | | Frequency | Daily Payments | | Day Count: | Actual / Actual | ## Valuation A fixed lending or borrowing position is the sum of its cash-flow discounted. Cash-Flows are either interest (denoted, "cpn") or principal repayment at maturity T. The Present Value or PV as a function of its discounted cash flows is written as: $$ PV = \sum\_{i} CF\_i \cdot B(0,i) = B(0,T) \cdot 100 + \sum\_{i} B(0,i) \cdot cpn (\*) $$ Where: $$ B(0,i) = \frac{1}{{(1+r(0,i))^i}} $$ * B(0,i) are the discount factors or Zero Coupon Bonds prices * r(0,i) are the Zero Coupon rates Putting aside slippage, your position is initiated at par, i.e. initially:\ PV = Notional, or in other words, PV%=100%. We assume Notional = 100, above/below. As time passes, your lending position where you locked a certain cpn rate is no longer at par. Entering a new position at the then market rate, denoted cpn\_par afterwards would be valued at 100%. $$ \scriptsize PV = \sum\_{i} B(0,i)\*(cpn - cpn\_{par}) + \sum\_{i} B(0,i)\*cpn\_{par} + B(0,T) \cdot 100, \i.e. PV = 100+\sum\_{i} B(0,i).(cpn-cpn\_{par}) $$ By introducing PV01, the PV can therefore be rewritten as: $$ PV = 100+PV01 \times(cpn-cpn\_{par}) (\*\*) $$ Where: $$ PV01= \sum\_{i} B(0,i) $$ From (\*\*), it’s easy to see that for a lend position: PV>100 <=> cpn>cpn\_par, i.e. if the current market rate is lower than the rate the user locked when he entered the position, the present value of your position is higher than 100%. To recap, the two ways to write the PV are as follows: $$ PV=\sum\_{i} CF\_i \times B(0,i)=B(0,T) \times 100+\sum\_{i} B(0,i) \times cpn (\*) \PV = 100+PV01 \times (cpn-cpn\_{par}) (\*\*) $$ ## **Dirty Price vs Clean Price** When entering a position, if the user does not enter at exactly 8am UTC (i.e. 4pm HKT), some of the coupon would already have started to accrue. The position’s dirty price does take this accrued coupon into account in the position’s valuation while the clean price does not:
# Cross-Currency Multi-Leg Like a Cross-Currency Swap, but not A number of participants in the crypto financial markets borrow in USD fiat, convert, and deploy those proceeds into crypto. This exposes them to currency risk. Bitcoin miners and Ethereum validators especially are exposed to longer-term cross-currency risks as your borrowed proceeds (typically in USD) are deployed into longer-term assets such as mining equipment, technological, and physical infrastructure that generate returns in Bitcoin and Ether respectively. For such participants, there has been no easy way to hedge such cross-currency risk. For these participants, they can now into multiple-leg trades to hedge your exposure: * Borrow ETH and Pay ETH on a Floating or Fixed Basis * Lend and Receive USD Fixed This effectively enables Miners and Validators to lock-in or convert your native BTC or ETH returns back into USD eliminating for the most part, your currency risk. {% hint style="info" %} We are working with select counterparties on taking BTC facilities, and mining equipment as collateral. Reach out if there is any interest to participate in one of our pilots. {% endhint %} On the flip side, there are a number of HODLers, or those which are sitting on BTC assets having perhaps invested many years in the past. Given the lack of BTC-native assets to invest and earn yields in, such investors often look to foreign markets (i.e. non-BTC denominated markets - ETH, Stablecoin, USD fiat, or other) to earn higher yields. In such cases, these HODLers may look to invest in USD-denominated assets but then swap those returns back into BTC. To do so, they must first convert your BTC into the second currency, for example, USD and purchase your asset accordingly (e.g. real estate). Such participants could: * Lend WBTC for \[ 1 ] year and Receive Fixed * Borrow USD, invest it in the USD-earning assets and Pay Fixed This enables all BTC or ETH HODLers to invest in USD (or other) denominated assets and lock on those returns in your native currency without any currency risk. Each of the above multi-leg trading strategies are supported by robust single-leg lending/borrowing markets ensuring greater depth, better pricing, and more transparency than current alternatives. # Yield Vaults Releasing soon. # Maker Incentives Infinity will reward active market makers with our native token $IFT. **7.5%** (`75,000,000 $IFT`) of the token supply is allocated to be distributed to liquidity providers ("LPs") based on formulas that reward a combination of maker volume, uptime, two-sided depth, bid-ask spreads, and the number of markets supported. **Objectives:** The purpose of this 'jump ball' incentive structure is to incentivize all market participants to provide high-quality, two-sided liquidity in the markets that matter most for Infinity's long-term adoption. This mechanics of this program have been borrowed from [dYdX](https://docs.dydx.community/dydx-governance/rewards/liquidity-provider-rewards) but adapted accordingly for Infinity's product set and objectives. The following terms and incentive plan may be modified from time-to-time with notice. ## Overview To incentivize market liquidity, $IFT will be distributed to liquidity providers based on formulas that reward participation in markets, maker volume, two-sided depth, spread (vs. mid-market), and uptime on Infinity's Rates Protocol. Any qualified Ethereum address can earn these rewards, subject to a minimum maker volume threshold of currently 5.00% of maker volume in the preceding epoch. $IFT will be distributed on a 30-day epoch basis over five years and is not subject to any vesting or lockups. 1,150,684 $IFT will be distributed per epoch. Liquidity provider performance is monitored and calculated on a minute-by-minute basis (using randomized sampling) and aggregated into a $$Q\_{SCORE}$$ for a given market. Given minute-by-minute sampling, each epoch has 30 days \* 24 hours \* 60 minutes of data points—43,200 data points per epoch in total. At Infinity, we currently service 5 tokens, across 10 tenors (from Float to 3Q), and therefore 50 markets in total: | | Float | 1D | 2D | 1W | 2W | 1M | 2M | 1Q | 2Q | 3Q | | ---- | ----------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | -------- | | ETH | ETH\_Float | ETH\_1D | ETH\_2D | ETH\_1W | ETH\_2W | ETH\_1M | ETH\_2M | ETH\_1Q | ETH\_2Q | ETH\_3Q | | USDT | USDT\_Float | USDT\_1D | USDT\_2D | USDT\_1W | USDT\_2W | USDT\_1M | USDT\_2M | USDT\_1Q | USDT\_2Q | USDT\_3Q | | USDC | USDC\_Float | USDC\_1D | USDC\_2D | USDC\_1W | USDC\_2W | USDC\_1M | USDC\_2M | USDC\_1Q | USDC\_2Q | USDC\_3Q | | DAI | DAI\_Float | DAI\_1D | DAI\_2D | DAI\_1W | DAI\_2W | DAI\_1M | DAI\_2M | DAI\_1Q | DAI\_2Q | DAI\_3Q | | WBTC | WBTC\_Float | WBTC\_1D | WBTC\_2D | WBTC\_1W | WBTC\_2W | WBTC\_1M | WBTC\_2M | WBTC\_1Q | WBTC\_2Q | WBTC\_3Q | For each of these markets, the following functions are used to compute how much $IFT should be rewarded to each liquidity provider per epoch: $$ Q\_{market,N}=min(\sum\_{i=1}^{43,200}Q\_{BID,i},\sum\_{i=1}^{43,200}Q\_{ASK,i})^{\alpha\_N} \times (Uptime\_{EPOCH})^5 \times (MakerVolume)^{\beta\_N} $$ Where: $$ Q\_{BID,i}=\frac{BidDepth\_i}{{BidSpread\_i}}\times 1\_{{(BidSpread\_i\
| Term | Description |
|---|---|
| Maker Volume | Total maker volume for the Epoch. |
Q_{BID}=\sum_{i}Q_{BID,i}=\sum_{i}\frac{BidDepth_i}{{BidSpread_i}}\\ \scriptsize for\: each\: bid_i\: with\: BidDepth_i>MinDepth \\and\: with \:BidSpread_i < MaxSpread\: (Mid-Mkt) | Assume a liquidity provider has multiple open bid orders on the ETH float market (250 ETH float borrow at 3.09%, 1,500 at 3.08%, 2,000 at 3.05%) and ETH float rate is currently at 3.10% (based on mid-market). Assume MinDepth is ETH 1,000 and MaxSpread vs. mid-market is 0.10%.
|
| Q_{ASK}=\sum_{i}Q_{ASK,i}=\sum_{i}\frac{AskDepth_i}{{AskSpread_i}} \scriptsize for\: each\: ask_i\: with\: AskDepth_i>MinDepth \\and\: with \:AskSpread_i < MaxSpread\: (Mid-Mkt) | Assume a liquidity provider has multiple open ask orders on the ETH float market (1,000 ETH float lend at 3.11%, 1,500 at 3.15%, 2,000 at 3.30%) and ETH float rate is currently at 3.10% (based on mid-market). Assume MinDepth is ETH 1,000 and MaxSpread vs. mid-market is 0.10%.
|
| Q_{MIN}=min(Q_{BID},Q_{ASK}) | Rewards 2-sided liquidity by taking the minimum of Q_{BID} and Q_{ASK}. |
| Q_{EPOCH}=\sum_{k=1}^{43,200}Q_{MIN,k} | Q_{EPOCH} is the sum of all Q_{MIN} in a given epoch. |
| \footnotesize Uptime_{EPOCH}=\sum_{k=1}^{43,200}freq(Q_{MIN,k}>0) | Uptime EPOCH is the percentage of time in an epoch that a given market maker was live and quoting on both the bid and ask sides with order sizes greater than stated order minimum (noted below by market) and spreads smaller than stated maximum spread (noted below by market). |
| \footnotesize Q_{FINAL}=Q_{EPOCH} \times (Uptime_{EPOCH})^5 | Q_{FINAL} normalizes Q_{EPOCH} to account for uptime |