Impermanent loss happens when you provide liquidity to a liquidity pool, and the price of your deposited assets changes compared to when you deposited them. The bigger this change is, the more you are exposed to impermanent loss. In this case, the loss means less value at the time of withdrawal than at the time of deposit.
Hummus Exchange is designed to remove impermanent loss risk for liquidity providers.
An example of capital inefficiencies is the way most protocols handle their liquidity in fragmented pools: USDT liquidity in Curve is spread around 5 pools. This makes USDT liquidity fragmented over 5 different pools, making the capital requirement for USDT 5 times higher than necessary to provide a similar service.The same happens with Uniswap, which has +100 pools containing USDT. These pools cannot share liquidities with each other.
Hummus Exchange allows for single-side liquidity provision, meaning you only need 1 token to become a liquidity provider.
Our objective at Hummus Exchange is to provide a StableSwap AMM with a unique friendly interface providing maximum capital efficiency, making impermanent loss a thing of the past.