Voltz Protocol is a noncustodial AMM for Interest Rate Swaps (IRS). Interest Rate Swaps, where one rate of return is swapped for another, are a key pillar in traditional finance but have not yet been fully explored in DeFi. They are used to hedge against risks as well as speculate. On the Voltz Protocol, traders can swap interest rates with leverage, and liquidity providers can supply concentrated liquidity to IRS pools.
Trading and LPing
There are three main ways to use Voltz Protocol:
- Fixed Takers (FTs) exchange a variable rate in return for a fixed one, to hedge against risks
- Variable Takers (VTs) exchange a fixed rate in return for a variable one, to potentially earn higher APYs
- Liquidity Providers (LPs) supply the liquidity to IRS pools
Each of these positions can be made with high levels of leverage thanks to the Voltz Risk Engine and concentrated liquidity.
Building on Voltz Protocol
Volts Protocol is open source, serving as a fundamental building block of a range of potential DeFi applications. The developer documentation contains helpful information for getting started with building on Voltz Protocol, and even has an example of an LP optimizer built on top of Voltz.
Uniswap v3 code is used within Voltz Protocol, as a result of a governance vote, helping to put the protocol at the cutting edge of DeFi. An active Discord community contains many developers building their own projects on top of Voltz Protocol.
Powerful Trading Strategies
A range of interest rate swapping strategies exist which can provide attractive returns in different market conditions. Learning how to trade leveraged interest rate swaps is a skill that is effective in bull, bear, and neutral markets, which is why more and more DeFi users are becoming IRS-savvy. The Voltz Protocol UI makes it easy to adjust trading and LP positions – you’ll be a seasoned swapper in no time!