# Introduction Impermax enables permissionless lending for Leveraged Yield Farming ## **What is Impermax?** Impermax is a cross-chain, permissionless, decentralized lending protocol where users can participate as lenders or borrowers in isolated lending pools. Each lending pool represents a pair of 2 tokens of a DEX. Lenders can supply tokens to any lending pool to earn passive yield without impermanent loss. Borrowers can deposit LP tokens in a lending pool to borrow tokens of the token pair. This enables borrowers to leverage their LP tokens and get even more LP tokens, allowing for leveraged yield farming and enhanced LP rewards. ## **Impermax makes yield farming simpler and safer** With Impermax, farmers can start earning yield from liquidity providing on DEXes with a single token deposit. Impermax eliminates the risk of impermanent loss for these farmers (suppliers) removing one of the biggest negatives of liquidity providing. How does this work? Instead of depositing funds directly into DEX contracts, the funds are supplied to borrowers who use them to increase farming earnings through leverage. These increased earnings are shared with the lender under the form of interest. This is called Indirect Liquidity Providing. Borrowers carry all the impermanent loss risk on behalf of the Indirect Liquidity Providers. This is a great benefit for people who want to earn DEX yields with less risk, but it’s also a benefit for DEXes since it helps more risk-averse users safely participate in liquidity providing. ## **Impermax lets you borrow to multiply your yield using leverage** If you are more comfortable with risk, Impermax also lets you borrow to increase your farming position. You can take LP tokens from a DEX like Uniswap, Quickswap, SushiSwap, or many others, and use them as collateral to borrow more of the same token. Then you earn yield on both your original amount and the borrowed amount. This is called Leveraged Yield Farming. You share a portion of these extra earnings with the lender and keep the rest as profit. You can de-leverage and pay back the borrowed tokens any time. What’s the liquidation risk? If there’s a sudden change in collateral value, the borrowed funds may be liquidated to pay back the lender. Liquidation fees are limited to 4% of your borrowed amount. ## **Impermax creates new earning opportunities** The ability to choose higher and lower risk/reward positions for DEX farming creates many new earning opportunities that haven’t been available before. The ability to borrow against LP tokens and use the funds for other investing activities removes a big opportunity cost to liquidity providers. Impermax users have already come up with many new strategies for maximizing returns and minimizing risk. As the DeFi industry grows, these kinds of strategic options will become evermore common and useful. # User Guide This guide shows how to use the app step-by-step. ## Connect Metamask Before you start using the Impermax app you need to connect it to your web wallet. If you don't have one yet, you can download and set up a [Metamask wallet](https://metamask.io/download). Once you have your wallet set up, go to [Impermax.finance](https://www.impermax.finance/) and click Launch App at the top of the page. ## PDF Guide This [pdf guide](https://5c39d759-6e34-4efc-9287-8e9854baeb7a.usrfiles.com/ugd/5c39d7_f0ebfa9e58344c32a827bd7ec59bf8a1.pdf) covers 1. Basic requirements 2. How to deposit LP tokens 3. How to leverage LP tokens 4. How to deleverage LP tokens 5. How to borrow funds using LP tokens as collateral 6. How to repay borrowed funds 7. How to deposit tokens to earn from Indirect Liquidity Providing 8. How to withdraw tokens deposited for Indirect Liquidity Providing ## Video Guide {% embed url="" %} # FAQ Frequently Asked Questions **What is Indirect Liquidity Providing?** Indirect Liquidity Providing is supplying tokens for lending to yield farmers. The borrowers use the funds to earn higher yields on decentralized exchanges and then share a portion of the rewards with the Indirect Liquidity Providers. All rewards are paid automatically. **What is Leveraged Yield Farming?** Leveraged Yield Farming means borrowing tokens to increase one’s Liquidity Providing position on a decentralized exchange. This allows yield farmers to multiply their yields many times over. **Will Indirect Liquidity Providers (lenders) always get their money back?** Smart contracts ensure that funds are automatically repaid to lenders. If a loan starts becoming too risky, the contracts automatically liquidate the borrower’s position and deposit all the funds back in the lender’s account with no loss to the lender. **How does Impermax generate yield for users?** AMMs like Uniswap let liquidity providers earn yield from transaction fees and liquidity mining. Impermax allows users to greatly increase the returns of these yields in exchange for higher or lower risk. **How do I earn using Indirect Liquidity Providing on Impermax?** Indirect Liquidity Providing is much easier than traditional liquidity providing. Just deposit any supported token on the Impermax app, earn passive returns, and withdraw them at any time. It works similar to staking. **How does governance work?** An on-chain governance system in the model of Compound’s will be rolled out eventually. When complete, IBEX holders will be able to vote on proposals, in-app economics, and distribution of reserve funds from within the Impermax app. **After deleveraging I can't see my LP tokens. Have I lost my funds?** No, your funds are safe. Deleveraging breaks down the LP token into the 2 underlying assets and uses them to pay the loan. The remaining tokens are sent to your wallet as the underlying assets. **What is the purpose of the IBEX token?** IBEX is a governance token that controls all the reserve income generated by the Impermax lending markets across all supported networks. Holders will have the ability to receive this passive income, as well as governing the future of the project. **How does Impermax generate value for IBEX token holders?** Up to 20% of each interest payment is sent to the reserve account to be distributed as profits and/or growth development funds, according to the on-chain governance. **Where can I buy IBEX?** IBEX is currently available on [Uniswap V2 on Ethereum](https://app.uniswap.org/#/swap) [QuickSwap on Polygon](https://www.quickswap.org/#/swap) [SushiSwap on Polygon](https://app.sushi.com/swap) [SushiSwap on Arbitrum](https://app.sushi.com/swap) [Swapr on Arbitrum](https://swapr.eth.link/#/swap?chainId=42161) [Pangolin on Avalalanche](https://pangolin.exchange/) **Which wallets are supported?** Currently MetaMask. **What is Leverage?** Leverage is when you borrow funds and use them to increase the size of your position. You can earn increased rewards on this higher amount, then later pay back the loan. For example, if you use $1,000 as collateral to borrow $4,000 we call that x5 leverage because your position went from $1,000 to $5,000. **What are the risks of Leveraged Yield Farming?** Too much change in LP token price can mean your leveraged position gets liquidated to ensure the lender is repaid. When a position is liquidated, 4% of the borrowed amount is taken from the starting collateral. Liquidation is only possible with leveraged positions and borrowing, not Indirect Liquidity Providing. If the relative prices of the tokens in a LP token pair diverge too much, the system automatically sells the LP tokens and repays the lender. You can choose the safe price limits on each position when you start leveraging. As with all DeFi, there are also contract risks, although Impermax has taken steps to reduce these. **How do I earn with Leveraged Yield Farming on Impermax?** Yield leverage is for users who want to multiply their returns at the cost of higher risk. First, provide liquidity on Uniswap V2 or any other supported AMM and acquire some LP tokens. Then deposit the LP tokens on Impermax. Then choose the amount of leverage you want. This lets you borrow funds to increase your position (and therefore earnings) by many multiples in most cases. **What is Liquidation and how is it triggered?** When you take a leveraged position you choose a price movement window for the LP token pair you are leveraging. The higher the leverage you choose, the smaller the price movement window. If the relative prices of the tokens in the pair move higher or lower than the window, your leveraged LP tokens will be sold and the loan automatically repaid. If this happens, you don’t lose your entire balance. You will only lose 4% of the borrowed amount. More details are [here](https://impermax.medium.com/the-leveraged-yield-farmers-guide-to-liquidation-6bbf0ff3cda). **How can I avoid Liquidation?** You can reduce the risk of liquidation in several ways. Choosing token pairs with low volatility relative to each other reduces risk. Choosing lower leverage and therefore a wider liquidation window reduces risk. If you check back and see that your position is getting closer to liquidation you can reduce leverage or deleverage completely any time you want. **As a lender (Indirect Liquidity Provider) can I withdraw my deposited funds any time?** In most cases, yes. But if there is extremely high borrowing demand for a particular token there may be times where there is not enough liquidity available for you to withdraw all your tokens. These instances usually don't last long because they cause interest rates for borrowers to become very high, which balances the borrowing demand. # Supported AMM Exchanges The Impermax app supports the following decentralized exchanges [Uniswap V2 on Ethereum](https://app.uniswap.org/#/swap) [QuickSwap on Polygon](https://www.quickswap.org/#/swap) [SushiSwap on Polygon](https://app.sushi.com/swap) [SushiSwap on Arbitrum](https://app.sushi.com/swap) [Swapr on Arbitrum](https://swapr.eth.link/#/swap?chainId=42161) [Pangolin on Avalalanche](https://pangolin.exchange/) [TraderJoe on Avalalanche](https://traderjoexyz.com/#/home) [Solarbeam on Moonriver](https://app.solarbeam.io/exchange/swap) [Solidly on Fantom](https://solidly.exchange/) Impermax is continually adding support for new decentralized exchanges and L2 platforms. # Deployed Contracts Links to media channels and token addresses. ## IBEX Address
ContractAddress
Ethereum0xF655C8567E0f213e6C634CD2A68d992152161dC6
Arbitrum0x56659245931CB6920e39C189D2a0e7DD0dA2d57b
Base0xb8A9a92DFE1303728394dD0f8362a09962dEC24f
Polygon0xf972DACEd7C6b03223710C11413036D17eB298f6
Optimism0xBB6BBaa0F6D839A00c82B10747aBc3b7E2eEcc82
Avalanche0x089d3dAF549f99553C2182DB24bC4336A4F0C824
ZkSync Era0xbe9f8C0d6f0Fd7e46CDaCCA340747EA2f247991D
Scroll0x78Ab77F7D590FB101AA18affc238cbfEA31EAd5b
Linea0xcf0f95E34F25d1BB3D9cad3Cbb2EB40dAb7c3841
Blast0x9f04B6CEfd5BCd67d76aB708F17553Ce40188e6A
## Ethereum Network
ContractAddress
Factory0x8C3736e2FE63cc2cD89Ee228D9dBcAb6CE5B767B
Router0x5e169082fff23cee6766062b96051a78c543127d
PriceOracle0x5671b249391ca5e6a8fe28ceb1e85dc41c12ba7d
## Polygon Network
ContractAddress
Factory0xBB92270716C8c424849F17cCc12F4F24AD4064D6
Router0x7C79A1c2152665273ebD50e9E88d92A887a83BA0
PriceOracle0x3271cc175577465691e48196955e09d638fa05d5
ImpermaxChef0x89703cA5c6C3BD35f9D288Ff9710BecBFA8C6f7b
QuickSwap Staked LP Factory0x846019FB6f136fC98b80e527C3d34F39D16a38c4
SushiSwap Staked LP Factory0xcb30A66e72Ed90D1b34f78fc0655895FC28bB6CF
## Arbitrum Network
ContractAddress
Factory0x8C3736e2FE63cc2cD89Ee228D9dBcAb6CE5B767B
Router0x5475aEd9d11BeaA822e122C36ACDfa0dA2eb086f
PriceOracle0x5671B249391cA5E6a8FE28CEb1e85Dc41c12Ba7D
ImpermaxChef0x99CF05461dd5F94761d4Fae6a2abDa47A93451f5
SushiSwap Staked LP Factory0x270250F59C1ffA06C9e3234D528858Ff59aFCE68
Swapr Staked LP Factory0x4AE8915A8D11178154248C692e31710191053466
## Avalanche Network
ContractAddress
Factory0x8C3736e2FE63cc2cD89Ee228D9dBcAb6CE5B767B
Router0x3039C26F9126833bAca8EdBF61c761CD909F461f
PriceOracle0xC12E00DE204d58eAd5B5cE9054E94aeE7747fB6C
ImpermaxChef0x5475aEd9d11BeaA822e122C36ACDfa0dA2eb086f
Pangolin Staked LP Factory0xBB92270716C8c424849F17cCc12F4F24AD4064D6
TraderJoe V2 Staked LP Factory0x16ED59ffbfbe62ebA9a69a304D38901F86461282
TraderJoe V3 Staked LP Factory0x58Fde5bdB2C6Bd828Bc41c12a68189C7cd93dCE2
## Moonriver Network
ContractAddress
Factory0x8C3736e2FE63cc2cD89Ee228D9dBcAb6CE5B767B
Router0x3271cc175577465691e48196955e09d638fa05d5
PriceOracle0x5671B249391cA5E6a8FE28CEb1e85Dc41c12Ba7D
ImpermaxChef0xD299D53Fc3B09038765af2091a0647e2304a7caa
ImpermaxRewarder0x8ab3567aba5151a3Ab4C1Aff2Fc9192178ded78D
Solarbeam Staked LP Factory0x95887654d8646c26fab33f344576e2e74b211256
## Fantom Network
ContractAddress
Factory0x60aE5F446AE1575534A5F234D6EC743215624556
Router0xB9f3413e206F1D658D4DaFB233873dDe56cf94Fc
Solidly Staked LP Factory0x95887654d8646C26fAb33F344576E2E74b211256
## Blast Network
ContractAddress
Factory0x7B816c1CCaFA7D3e71E279Ed9DC3226484f6EF87
Router0x447b4E5C469b76A1f7175cE7b224629091713a02
Solidly Staked LP Factory0x29C714621152E607ea9768be05F8A96d9e41d62f
# Blast Points and Gold | | | | ---------------------------------------------------------- | ------------------------------------------ | | Deployed smart contract that will receive Blast Gold | 0xe16f15Bbb855fd02D3249110DC2c26fcD36ed236 | | Configured points operator address for that smart contract | 0x051D5c77525c32b9f4b0C9b58bcb7dd660b17ED4 | # Protocol Treasury The Impermax treasury is managed through different addresses with different purposes. **Multisig Treasury**\ This is our main treasury address.\ [**https://debank.com/profile/0xc28F68cD2DF0fCc50f0058fB20abbc77Bec8bdc6**](https://debank.com/profile/0xc28F68cD2DF0fCc50f0058fB20abbc77Bec8bdc6) **Reserves Manager**\ The address which is directly collecting revenues from the Impermax protocol.\ **Bridge Liquidity Provider**\ The address used to provide IBEX liquidity to bridges in order to allow for easy cross-chain IBEX transfers while keeping the safety of the underlying native bridge.\ **Operations**\ The address used for Impermax daily operations.\ # Code Audits Third party code audits help ensure the security of funds. Multiple third party audits have been completed for Impermax contracts: ## IMPERMAX V3 **August 2025:** Audit from Guardian for [Aerodrome's Slipstream integration](https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FZSqnl0TPTc6pWBHLuHur%2Fuploads%2FQLbxcYMLJhQNoWJKXQo6%2FImpermax%20Tokenized%20Aerodrome%20Report.pdf?alt=media\&token=80ae225b-f15c-4624-985e-48e60e4e1f64) **July 2025:** Joint audit from Guardian, Charles Wang from Bailsec, Riley Holtereus from Cantina: [Updated Impermax V3 Core audit](https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FZSqnl0TPTc6pWBHLuHur%2Fuploads%2Fc5KfXIpov0BrQvrkHSFU%2FImpermax-Report.pdf?alt=media\&token=54942eb8-601d-468b-a72f-ac21035ceaef) **April 2025:** Bailsec:[ Impermax V3 Core audit](https://github.com/bailsec/BailSec/blob/main/Bailsec%20-%20Impermax%20-%20V3%20Core%20-%20Final%20Report.pdf), Guardian Audit:[ Impermax V3 Core audit](https://github.com/GuardianAudits/Audits/blob/main/Impermax/2025-02-08_Impermax.pdf); ## **IMPERMAX V2** **March 2021:** Impermax V2 smart contracts have been audited by[ Certik](https://www.certik.org/) and[ Cyber Unit](https://cyberunit.tech/): * [Core audit by Certik](https://github.com/Impermax-Finance/impermax-x-uniswapv2-core/blob/main/audit/CertiK%20Audit%20Report%20for%20impermax-x-uniswapv2-core.pdf) * [Token audit by Certik](https://github.com/Impermax-Finance/IMX/blob/main/audit/CertiK%20Audit%20Report%20for%20IMX.pdf) * [Core audit by Cyber Unit](https://github.com/Impermax-Finance/impermax-x-uniswapv2-core/blob/main/audit/SC_impermax_core.pdf) * [Periphery audit by Cyber Unit](https://github.com/Impermax-Finance/impermax-x-uniswapv2-periphery/blob/main/audit/SC_impermax_periphery.pdf) * [Oracle audit by Cyber Unit](https://github.com/Impermax-Finance/simple-uniswap-oracle/blob/main/audit/SC_impermax_oracle.pdf) # Protocol Basics Basic functions of the Impermax protocol. Impermax is designed to let users become lenders and/or borrowers. Borrowers use LP tokens as collateral and use the borrowed funds to increase their liquidity providing positions. ## Lenders (Indirect Liquidity Providers) Lenders have reduced risk compared to a traditional liquidity provider. Lenders can supply ERC20 tokens to any lending pool and earn interest paid by borrowers. ## Borrowers (Leveraged Yield Farmers) Borrowers have increased risk and reward compared to a traditional liquidity provider. Borrowers use LP tokens as collateral for loans. Those loans are used to acquire even more LP tokens. In this way, yield farmers can multiply their yield farming positions up to 50x. The protocol bundles many steps into a single transaction to save on gas fees. ## Lending Market The Impermax lending market is built around two innovations. The first is its unique economic architecture, which keeps all lending pools isolated. This means that if a borrower’s position is liquidated in one pair, the other pairs will not be affected. This also enhances security since an attack on one token pair pool will not affect the other pools. The second novel structure is the collateralization model. Instead of using a loan-to-value calculation for collateral, Impermax uses a parameter called “safety margin” to reduce the required over-collateralization and provide much higher leverage than similar current designs. # Lending Pools and Collateral These innovative models allow much higher leverage with less risk compared to other protocols. ## Lending Pools Impermax architecture is based on isolated Lending Pools. Anyone can create a new Lending Pool through the Impermax Factory contract in a permissionless way. This is possible because the architecture isolates also the risks to individual Lending Pools. If a borrower is liquidated in one Lending Pool, then the other Lending Pools will not be affected. At the same time if a Lending Pool with a weak or malicious collateral is created, this won't affect the safety of the funds on all the other Lending Pools. Certain tokens like ETH will be borrowable in multiple Lending Pools. Lenders will be free to choose in which one they lend their ETH, and we should expect the ETH interest rate to be different across them. This is a great way for both borrowers and lenders to better manage their risks. ## Collateral Impermax allows borrowers to use AMM LP tokens as collateral. At any given point in time the value of the ABC/XYZ LP token is backed 50% by ABC and 50% by XYZ. We use this property to create an optimal collateralization model to ensure loans backed by LP tokens are as safe as possible. The collateralization model calculates how much collateral is needed for a loan to be able to pay back the lender if there is a price swing between the two assets in the LP token. If the price swing is higher than the specified safety margin, the loan becomes liquidatable. Since each pair may have different price volatility expectations, the safety margin for each pair is specified in each LP token pair contract. The default setting allows one asset to increase by up to 150% or decrease by 60% with respect to the other. However, stablecoin pairs are often set with low safety margins, which allow for much higher max leverage. # Liquidation Liquidation happens when a loan is automatically repaid because the collateral is in danger of becoming too low to repay it. When you take a leveraged position, you choose a price range estimate for the price ratio of the tokens pair you are leveraging. Higher leverage means you will have a smaller safe price range. Liquidation happens when the price moves outside this range. Therefore a smaller range means more risk. Impermax uses Time Weighted Average Price (TWAP) for liquidations. ![](/files/RaZy5WU2TXKi62Tz5aFu) The example above shows a 10x leveraged position on USDC/USDT. Note the New Liquidation Prices range. It shows that if the price ratio of USDC/USDT moves below 0.5985 or above 1.667 the leveraged position will automatically be liquidated. ## If The Price Drops Too Low If the price ratio drops below this range, the collateral is about to become worth less than it would take to repay the loan. To protect the lenders the loan is liquidated. In case of liquidation borrowers lose up to 4% of borrowed amount. ## **If The Price Rises Too High** Similarly, if the LP token price moves above this range, the value of the loan will be too high to be repaid by the collateral. In the same way, to protect the lenders the loan is liquidated. In case of liquidation borrowers lose up to 4% of borrowed amount. ## **Liquidation Does Not Mean Losing All Your Funds** As mentioned above, when your position is liquidated you will lose 4% of the borrowed amount, which is deducted from your starting collateral. For example, if you start with 1,000 tokens and borrow 2,000 tokens, this gives you a x3 leveraged position. In the event of liquidation you would lose 4% of 2,000 which is 80. So after liquidation your account balance would be 1,000–80 = 920. ## Avoiding Liquidation Here are some ways to protect yourself from liquidation. Choose LP tokens with more stable value. More volatile token pairs have a higher chance to go outside the liquidation price range. Choose a wider liquidation price range when you take your leveraged position. When prices are volatile, you may want to check back on your leveraged position often to see whether you want to deleverage. If you see the price getting too high or too low, you can reduce leverage or fully exit your leverage with the app’s deleverage button. Note that this relies on confirming a network transaction, so it may require higher transaction fees or wait times if the network is congested. Lend funds instead of leveraging. Supplied funds have no risk of liquidation. This will always be a safer option than leveraging and may also provide very good returns. You can supply funds in the Lending tab of the app. # Interest Rates The interest rates on loans increase when there is more borrowing. Given the permissionless nature of the application and considering that for a governance system there may be too many pairs to be handled individually, the protocol uses an adaptive interest rate model. Each borrowable pool has its own interest rate curve that acts independently from other borrowable pools. The adaptive interest rate model determines interest rates according to historical supply and demand. This means that as more assets are utilized (borrowed) from a pool, the interest rate grows linearly. But when the relative amount utilized reaches a specified point (`kinkUtilizationRate`), the interest rate begins growing at a greater linear rate. ![The interest rate paid by a borrower increases as a function of the ratio of funds borrowed/funds supplied.](https://lh3.googleusercontent.com/A78I_gfnbZz9TQgyT6AxbK81tHO0xJAsRTWRYoQ5TsiYWAFAIoE4Y809k6Ys-urolgJAUya77xuqq9dB7WBUU8RBwKWBJu3DTBFHUGUJvZGWu2zCfm18q5IM910KA-niGHkugRU4=s1600) This chart shows that for a given supply of an asset, as more of that supply is used for loans, the interest rate charged to the borrower increases. Note that as more supply is added to the pool, the `utilizationRate` reduces, and interest rates will go down. The interest rates at any time depend from the `utilizationRate` and the `kinkRate`. The `kinkRate` correspond with the interest rate when the `utilizationRate` = `kinkUtilizationRate`, so whenever the `kinkRate` is higher also the interest rates are higher, and viceversa. The `kinkRate` is a parameter that is calculated algorithmically by the protocol according to historical supply and demand. Whenever the `utilizationRate` is greater than the `kinkUtilizationRate` the `kinkRate` increases, and viceversa. This ensures that incentives will always be balanced and that borrowers pay a fair interest to lenders based on market demand and without the need for external intervention. # Price Oracle Impermax uses a highly automated smart contract price oracle to monitor prices on Uniswap to calculate collateral valuation. The Price Oracle is a smart contract based on Uniswap’s TWAP (Time Weighted Average Price). It has been designed with attention to simplicity and gas costs. While numerous alternative price oracle solutions are available, this TWAP solution allows the platform to remain highly automated and permissionless. Anyone can create a new Lending Pool containing an arbitrary combination of assets, so traditional oracles that require manual set-up of new pairs won't work. The best way to guarantee support for all pairs on Uniswap and similar AMMs is to draw the prices from Uniswap itself. For each LP token pair, Uniswap V2 stores the cumulative price that is the sum of the spot price at each second in the history of the contract. By sampling the cumulative price at two points in time it is possible to calculate the TWAP between those two points by dividing the difference of the accumulators by the time elapsed. The Price Oracle uses a minimum period of 30 minutes to calculate the TWAP. This prevents accidental liquidation due to high market volatility or attempts of market manipulation through flash loans. The TWAP protects borrowers. Their position won't be liquidated unless the price exits the liquidation boundaries for at least 30 minutes. # Risks The use of Impermax Finance involves risks. Only invest what you can afford to lose. By using this application you acknowledge and take responsibility for the risks involved. The possible risks include, but are not limited to, the following. ## Contract Security Impermax has been [audited](/getting-started/code-audits) and time tested. The Impermax Core technology secured more than $250M in crypto assets at the all time high, and has never been exploited in the past. However, all DeFi applications' smart contract may contain bug or errors that haven't been discovered yet. Please consider this while using Impermax’s DeFi applications. ## Lending Supplying liquidity on Impermax is a low risk way to earn interest on your funds. However, it is not risk-free. There are two main factors that a lender should consider: * **You may temporarily be unable to withdraw**: as with every protocol based on lending pools, the lender may not be able to withdraw all of his funds at a certain point in time if there isn’t enough liquidity in the pool. Impermax uses a dynamic interest rate model that reduces the likelihood of funds not being withdrawable for a prolonged period of time. * **Unliquidated loans**: lenders rely on the fact that when the ratio of collateral to loan value for a certain loan is low enough, liquidators will take action to liquidate the loan. However, if this does not happen in time the loan may default. Impermax aligns all the economic incentives to reduce the likelihood of loan default to the minimum. **You can take advantage of Impermax Isolated Lending Pool architecture in order to mitigate lending risks**. If there are multiple lending pools where you can lend the same asset, then it can be a good idea to supply that asset to multiple pools. In this way you are spreading the risk between different pools so that if one security was affected, your funds on all the others would still be safe. Also the risk of not being able to temporarily withdraw would be much lower in this way. ## Borrowing When you use your LP tokens as collateral to require a loan or enter in a leverage position on Impermax, your collateral is always at stake and it may be liquidated when certain conditions are met. Before requiring a loan the application will show an *estimation* of the liquidation prices. When the market price crosses the liquidation prices, your collateral may be liquidated in order to repay your loan. Please notice that the liquidation prices are not fixed and may change as your loan size increases. ## Be Aware of Low Liquidity Pairs and Malicious Pairs Impermax is a permissionless protocol to which anyone can add a new pair. This means that some pairs will involve more risks than others, and some may even be created solely as scams. ### **Low Liquidity Pairs** Low liquidity pairs where there are not many active users can be very risky for both borrowers and lenders. In particular a few problems of low liquidity pairs are: * Inactive price oracle: Impermax relies on TWAP (Time Weighted Average Prices) calculated as the average price between an operation and the previous one on the pair. If a pair is inactive for a long period of time, the price of the oracle may differ substantially by the market price. * Inactive liquidators: as soon as a loan becomes liquidatable, liquidators can liquidate it and earn a profit. However, in an inactive pair there may be no liquidator following liquidations, and this can result in a possible funds loss for lenders. ### **Malicious Pairs** Users may create pairs on Impermax solely as scams. If you deposit your funds in such a pair you may not be able to withdraw them. A good way to avoid using malicious pairs is by not using URLs given to you by other users. Only use verified pairs, those listed in the home of the Impermax user interface. # IBEX Token Distribution How was the token supply distributed?
**Airdrop:** Impermax airdropped 1.5M IBEX tokens to top Uniswap liquidity providers on 29 April 2021. **Initial Uniswap Liquidity:** 1M IBEX tokens were allocated to creating the starting supply on Uniswap, ensuring plenty of early liquidity. **Treasury (IBEX Leveraged Farming):** 40M IBEX tokens were allocated to the liquidity mining program, which runs for 4 years after token launch. Yield is earned by borrowing tokens, which means users can multiply their IBEX yields by leveraging. That’s in addition to other yields they may be earning with leverage. This is something that’s found only on Impermax. **Private Sale:** 10M IBEX tokens were sold in the private sale for $500,000 USD at a price of $0.05 to fund early development and liquidity. These tokens will unlock slowly over 4 years (see distribution schedule below). **Protocol Growth and Development:** 20M tokens are set aside to help pay for hiring more developers and expanding the protocol to all major AMM platforms. These funds will unlock slowly over 4 years (see distribution schedule below). **Core Contributors:** 12M tokens are allocated for the founding team and other critical team members. These funds will unlock slowly over 4 years (see distribution schedule below). **Community:** 1M tokens were reserved for community rewards, including the airdrop to pre-launch suppliers and borrowers. **Advisors and Partners:** 2M tokens were reserved for key people and groups that are helping Impermax’s success. These funds will unlock slowly over 4 years (see distribution schedule below.) ![](/files/ROUyY4JGtqPOBacRG7az) Locked IBEX tokens use a simple unlocking curve that reduces the rate of unlocking by 2.4% every 2 weeks. This creates the above curve. Note that the Uniswap airdrop and starting liquidity are the only tokens that began unlocked. # IBEX Token Utility Holders can stake IBEX to receive profits generated by interest payments. IBEX is also a governance token that will give voting rights when governance is rolled out. ## Revenue Sharing All interest income on the platform is automatically split between lenders and protocol, with lenders collecting at least 80% and Impermax collecting up to 20% of each payment. Protocol revenues are currently distributed to token holders through staking. [Learn more about](/tokenomics/ibex-staking)[ Staking](/tokenomics/ibex-staking). ## Governance As the governance system is rolled out IBEX token holders will have full control of the ongoing income generated by the platform, allocating it to fund proposals or taking profits as they wish. The IBEX token is a simple governance token based on the model of other DeFi lending projects like Compound. IBEX holders will have sole voting rights on project governance. # IBEX Staking Users can stake IBEX to earn rewards from interest payment fees paid to the protocol. ## Profit Distribution To IBEX Holders Impermax is a profit generator. Up to 20% of all the interest paid on Impermax is kept by the protocol as profit. The IBEX token gives the right of ownership of the Impermax protocol, and for this reason IBEX holders benefit from the Impermax revenue stream. Protocol profits are used to buy IBEX from the market, creating buying pressure, and these IBEX are then distributed to holders through IBEX Staking. ## How To Stake IBEX You can start staking by navigating to the staking section of the Impermax app. The staking process is immediate and you can stake and unstake your IBEX at any time. By staking IBEX you will obtain xIBEX, a fully composable ERC20 token representing your share of the staking pool. Staking rewards are automatically compounded to your IBEX balance. Please notice that IBEX Staking is initially available only on Ethereum mainnet.
## Staking Contracts Staking is implemented through two smart contracts. The main smart contract, the staking pool (or xIBEX), is an ERC20 contract where users can stake and unstake their IBEX. By staking they will receive a number of xIBEX tokens representing their share of the staking pool. They can redeem these xIBEX at any time for the undeIBEXrlying tokens. Whenever some IBEX are sent to the staking pool they are split among all IBEX stakers according to their share of the staking pool. The second smart contract is the reserves distributor. This contract holds all the IBEX bought back from the market and distributes these IBEX to the staking pool at the distribution rate. This rate is computationally defined and set to distribute all the IBEX held by the contract in 90 days. The distribution rate is updated every time the IBEX balance of the contract changes. Therefore, this contract will act as a buffer that always sees an outflow of IBEX that will be distributed to stakers, and an inflow of IBEX bought back from the market. This property will ensure that the distribution rate will be stable with time, and that there won’t be drastic changes to it on a daily basis. ## Staking Token Addresses **x**IBEX **Ethereum address:** 0x363B2DEaC84F0100d63C7427335F8350f596bf59 **Reserves Distributor Ethereum address:** 0xa6f3c27f1b503221f3a3c9d34f587252ecfb3160