3xcalibur, ser?

3xcalibur is a liquidity marketplace, powered by Tri- AMM architecture to facilitate both swapping (Stable & Variable), and borrowing/lending.

3xcalibur Tri-AMM

3xcalibur is a liquidity marketplace, powered by Tri- AMM architecture to facilitate both swapping (Stable & Variable), and borrowing/lending.

Both the liquidity marketplace (3xcaliSwap) and money market (3xcaliCredit) are powered by constant function market makers.

Our protocol was built to address the problems outlined in the previous sections.

Protocol Brief:

3xcalibur is a liquidity marketplace, powered by Tri-AMM architecture to facilitate stableswaps, variable swaps and borrowing/lending. The Tri-AMM architecture makes 3xcalibur a highly-capable and modular automated market maker.

In its first iteration, 3xcalibur offers users a permissionless, liquidationless, oracleless Open Finance protocol featuring stableswaps, variable swaps, borrowing & lending of any ERC20 asset.

Both financial primitives are highly composable and offer a plethora of new secondary and tertiary financial instruments that can be built on top of our base protocol. Not only can we build new products and features on top, but we can build across to maximize value between 3xcaliSwap & 3xcaliCredit.

We aim to be the premier liquidity marketplace on Arbitrum, facilitating both trading and borrowing/lending for our platform users.

With 3xcalibur, the resurgence of open finance is here.

What does 3xcalibur Solve?

Building a Product Catered to other Protocols/Projects

3xcaliSwap is a permissionless DEX that allows other protocols to easily acquire deep liquidity for their token, bribe emissions to their pool, and also accrue fees from the liquidity they incentivize.

3xcaliCredit can be leveraged by protocols for raising capital via debt financing. Instead of selling their native token to raise capital, projects can borrow debt with their native token as collateral. This is a more ideal way to finance a project (especially in a bear market) compared to equity financing.

Solving Liquidity Games

Our swap AMM is based on the original Solidly codebase. This means by design, our protocol is built to align emissions with fees generated, and not with liquidity. Protocols and other large stakeholders lock their $XCAL to gain voting power and direct emissions to the pools they vote for. We have also improved several areas of the Solidly codebase, which we believe were mechanical issues that hindered its success. With the Solidly design, any protocol or project can easily incentivize their own liquidity, be it for their token, their stablecoin, or even other derivatives, and while doing so, they fully accrue fees. As a result, the liquidity attracted should be of higher quality and more sticky, thanks to the ‘protocol first’ nature of the design. Our Tokenomics and emissions schedule is improved on the Solidly and Velodrome iteration (see Token and Emissions for more details).

Oracleless Money Markets

The borrowing and lending feature is a money market facilitated by a constant product formula (AMM), which means it does not rely on oracles for pricing interest rates or collateral factors. We use a 3-variable constant product formula derived from Timeswap's solution.

Using an AMM architecture is a novel way to create a liquid money market protocol. With 3xcaliCredit, each pool is self-sufficient, and have their own market reactive native interest rate & collateral factor discovery mechanism. Every Asset Pair, E.g Token A (Asset) - Token B (collateral) can have multiple pools with a fixed maturity (Date). When the pool reaches maturity, borrowers who have not paid back their loans, have their collateral distributed pro rata amongst lenders based on their insurance coverage. There are no liquidations, only defaulting on borrowed assets.

Unlocking Limited Asset Markets

This opens up the market offering markets for more exotic tokens (long tail assets) which are more volatile and illiquid. Something that traditional borrowing and lending protocols cannot offer due to the risks associated with these assets. We are degens ourselves and know there is a big demand for long tail money markets.

Increased Functionality by Leveraging both Swap & Credit Markets

Our Swap AMM combined with our Credit market, both allow for more sophisticated user functionality as well as our own opportunities to build on top of the base protocol.

For example, hedging more volatile long tail assets.

Users build a leveraged short position by borrowing on 3xcaliCredit and then immediately selling the asset using 3xcaliSwap.

We can also use the 3xcaliCredit primitive to build more sophisticated products like Credit Default Swaps or Interest Rate Swaps.

Non-Liquidatable Loans

3xcaliCredit does not rely on liquidations for bad debt. This results in a more user-friendly way to borrow in a decentralized way. Borrowers do not need to continuously monitor their health factor, and are not subject to liquidation cascades during times of market volatility.

Instead, borrowers have the freedom to pay back their debt anytime before maturity, and in the event of borrowers defaulting - their collateral is distributed to the lenders of the pool.

True Fair Market Value

Using a constant product formula to determine borrowing interest rates and collateral factors offers greater capital efficiency for borrowers and lenders. It results in the true fair market value for both interest rates for assets and collateral needed to borrow. Liquidity Providers supply both Assets and Collateral to the pool. As lenders and borrowers begin to transact, it changes the composition of the pool, in turn this dynamically changes the interest rate and the minimum collateral required to borrow in real-time.

Arbitrage Opportunities (MEV)

Arbitrage occurs due to inefficiencies in capital markets when there are pricing discrepancies for assets across different markets. Automated Market Makers are able to keep assets listed on their exchange at market value due to such opportunities. When asset price on the AMM deviates from market price, arbitragers can profit from the spread. Not only, can users profit from the standard arbitrage opportunities presented by our swap pools. But users can also profit from arbitrage opportunities presented by our AMM based credit market. When 3xcaliCredit pools are imbalanced due to low interest rates or low collateral factors compared to other lending markets, users can take advantage of the difference in rates and collateral needed to borrow for profit.

Increased Security

Since 3xcalibur works without the need for oracles or liquidators, there are minimal attack vectors for the protocol.

Optimized User Experience

In the same way that OpFi mechanics are game-like, it means user experience is extremely important for the success of a project. As such, organic growth for a post-product project is intrinsically tied to user experience (playing the game). Users need to figure out what game they can play by using the product. With this being said, we spent a large amount of time on our front end, and optimized the UI/UX to make it easier for our users to play the game and capture value.

In our building phase, we spent time on user research and interviews with OpFi users to get feedback on the UI/UX. We did this in order to get more insights from our actual user base and optimize their user experience on the front end.