Embr finance — an all-in-one decentralized investment platform, powered by Avalanche. The team uses "best-in-class" DeFi protocols to offer decentralized investment strategies. Embr, based on Balancer V2, is the first next-generation AMM protocol in Avalanche.
How does the Embr finance work?
Weighted investment pools turn the concept of an index fund on its head: instead of paying a commission to portfolio managers to rebalance your portfolio, you get a commission from traders who rebalance your portfolio, following arbitrage opportunities
For certain assets, expected to trade consistently near parity (such as various varieties of stablecoins or synthetics), developers use AMM StableSwap, popularized by Curve. These pools allow for larger trades in these assets before they experience significant price impact.
What should you pay attention to:
1 | Embr provides a Uniswap-style trading experience that allows you to exchange one token for another. |
2 | Behind the scenes, Smart Order Router (SOR) intelligently draws liquidity from multiple pools to automatically determine the best available price from all available pools. |
3 | Earn EMBR by staking liquidity provider (LP) tokens. |
The protocol fee will be shared among the liquidity stakers. Provide liquidity in one of the EMBR 80/20 weighted pools to earn your share of the protocol fee. When a pool trades, the pool charges a trading fee. Each pool has its own trading fee, set depending on the underlying assets. In addition, liquidity providers can stake their LP tokens on eligible farms to get additional incentives to mine EMBR liquidity. As the pool charges a fee, your Embr Pool tokens will automatically charge a fee as they represent your pro rata share of the pool.
Benefits of a decentralized platform
Embr allows you to create self-balancing index funds. Instead of paying the portfolio manager to rebalance the fund continually, as ETF investors do, liquidity providers charge a fee when traders rebalance trading pools. This works because market participants are interested in rebalancing the portfolio to take advantage of arbitrage opportunities.