• What is Logarithm Finance? Logarithm builds an on-chain public derivative crossing infrastructure that delivers asymmetric yields by optimizing leveraged trades.
• Why do i need Logarithm Finance? We are building two products: Logarithm Basis and Logarithm Prime. Simply put, the Basis product will serve as a foundation for Prime. With Basis, you can enjoy one of the highest real yields for USDC available on-chain, without any impermanent loss. Prime will enhance the efficiency leverage trading on major derivative exchanges by executing orders P2P with tighter spreads.
• What is Logarithm Basis? Basis is a liquidity pool where a user deposits USDC, after that Logarithm opens a short position on a perp DEX to collect funding fees while keeping the majority of funds on the spot. Essentially, it's earning funding fees in a delta-neutral manner. The funding rate on GMX and other DEXs presents an attractive opportunity during a bull market. Due to the inefficiencies of on-chain markets, perp DEXs tend to have higher funding rates than centralized ones.
• What is Logarithm Prime? When you open a short or long position on DEX, you will either earn or pay funding fees. Depending on the utilization of liquidity from both sides, the amount of fees paid or earned is unequal; this is called a spread. By having access to numerous on-chain liquidity venues Logarithm will be able to optimize user's leveraged position by constantly rebalancing and settling against the most capital efficient platforms. For both long and short positions the effective funding rate will be the average between effective long funding and effective short funding rate.
• How can I be sure that my funds are safe? We will conduct multiple audits of our smart contracts to protect the funds. However, the risk of attack still exists among any crypto protocol, and your deposit safety is not guaranteed. You act at your own risk.
• What happens if the funding is negative? In general, markets tend to have a positive funding rate for most of the year. Even in adverse scenarios, like the FTX crash, the performance of the Basis product was not dramatically affected. You can read our research article here: https://medium.com/@logarithm.finance/logarithm-basis-funding-risks-288474b19277
• What happens if I want to withdraw my liquidity? You can withdraw the liquidity from our vaults anytime.