Borrow/Lending Liq.
At the heart of Hyperplex is a real-time, piecewise borrow/lending market for AMM liquidity that can lend individual ticks or ranges of liquidity.
We effectively have a separate borrow/lending market for every single tick. Unlike regular borrow/lending markets which has no floor APR, our liquidity is deposited into the user's original AMM by default meaning they're guaranteed a yield floor.
When a protocol borrows liquidity (on behalf of their user), they are required to
Pay any fees your deposit would have earned had it stayed in the original AMM. This way users don’t lose any fee earnings (which is guaranteed by a collateral deposit).
Return the liquidity according to the original AMM’s curve equation. Again, borrowing cannot negatively impact the LP position.
The borrower must pay a funding rate based on demand just like a regular money market. So if there are a ton of borrows at a given tick, they would have to pay an incredibly high funding rate. As a result, lenders earn strictly more than their original deposit would on its own.
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