Decentralized trading service GammaSwap today expanded to the Arbitrum network in a move developers say could benefit liquidity providers on the popular blockchain.
GammaSwap allows decentralized finance (DeFi) users to borrow liquidity provider (LP) tokens from automated market makers (AMMs) and “short” those LP tokens, hedging against supplied collateral or creating low-risk trading strategies. Shorting is a strategy for profiting from falling prices of an asset.
A liquidity provider is a user who locks capital in a DeFi application to earn yield from the platform. AMMs are blockchain-based trading mechanisms that eliminate the need for centralized exchanges.
A GammaSwap representative told CoinDesk that the team plans to deploy on more blockchains, such as BNB Chain and Ethereum, and provide support for Uniswap LPs – which lock billions of dollars worth of tokens across thousands of trading pairs.
Sourced from cryptonews.net.
