Buying a Protection

Armadillo allows users to protect their LP tokens from Impermanent Loss (IL) in 3 simple steps.

Step 1

The user must connect his wallet to the Armadillo platform via the Polygon network. After connecting to the platform, the system will present the type of pairs which you provide liquidity with, and the LP tokens worth is USD at that moment. In addition, the platform will show the highest Impermanent Loss (IL) percentage that occurred in a span of 60 days during the last 18 months for that pair.

Step 2

After clicking the “Buy protection” button, a widget will pop up with the IL protection details. In this model, the user must choose:

A. The value worth of the LP tokens he would like to protect. By default, it will be populated with the user's current Liquidity provided on different Defi platforms.

B. The protection period. The user can choose between 14, 30, 60 days of protection.

Step 3

After choosing the amount and the time of the protection the system will calculate the premium cost, and the user can press the confirm button in order to complete the purchase. The impermanent loss protection purchased will be reflected as an NFT that represents the coverage value, the appropriate time frame, and the pair selected by the user. Through this, any impermanent loss incurred will be automatically refunded to the user's wallet for that time duration in a seamless, decentralized and autonomous manner.