search
Published on Jun 20, 2022

What is Voltz?

Sidharth
#Learn
icon-alt1 Min
What is Voltz?

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!

Join the Communitynorth_east
pattern-left
pattern-right

Subscribe to receive Alpha!

Join 4.3k subscribers from renowned companies worldwide and get a weekly update in your inbox. Stay updated on the latest and finest projects and product updates.