Swaps & time-based loans
without liquidations.
Palmyr is a capital-efficient AMM and loan primitive. It offers predictable, time-based lending with no liquidations, protecting users from volatility storms. Borrowers receive an 80% payout on their deposit, while the remaining 20% is added as LP to reinforce liquidity — all with fixed loan terms.
How Palmyr works
1 · Deposit into a pool
Users deposit a token from a Palmyr pair. A loan can be created as long as tokenIn and tokenOut belong to the same pair. The pool handles both swaps and LP.
2 · 80% payout, 20% LP
When a loan is created, the borrower receives 80% of their deposit as an immediate payout. The remaining 20% is added as liquidity to the pool, keeping capital productive and strengthening liquidity.
3 · Time-based loan
Loans have a fixed duration — by default 3 months, configurable between 1 and 12 months. During the loan term, the borrower can repay the payout token and close the position. If they do not repay within the allotted time, the loan can be cancelled and the borrower withdraws the LP position linked to the loan instead — there is no price-based liquidation cascade.
Why Palmyr
No liquidations
Loans are governed by time, not price. There are no liquidation events driven by collateral volatility. If a borrower does not repay on time, they can cancel the loan and remain exposed to the pool through their LP position instead of being force-liquidated.
LP-first design
Every loan reinforces liquidity: 20% of the deposit becomes LP in the same pair. That LP position accrues swap fees and deepens liquidity for future traders and borrowers.
Dynamic Swap Fees
Swap fees are fully dynamic and evolve based on trade size and gas pressure. The default fee is 0.3%, with a minimal configurable range of 0.01%–1% and a maximal governance-defined range of 1%–10%. This adaptive structure helps reduce sandwich attacks and stabilizes overall pair health.
Governance-controlled parameters
Governance configures loan fees (1%–10%), loan duration (1–12 months), and swap fee ranges (0.01%–1% minimal and 1%–10% maximal). Over time, the community can refine parameters and mechanisms as the protocol evolves.
Default Parameters
Loan Parameters
- 80% payout, 20% added as LP
- Default loan fee: 5%
- Configurable loan fee: 1% – 10%
- Loan fee is always configured to be ≥ swap fees
- Default duration: 3 months (configurable between 1 and 12 months)
- Loans are valid if tokenIn and tokenOut belong to the same pair
Swap Fees
- Default swap fee: 0.3%
- Minimal configurable range: 0.01% – 1%
- Maximal configurable range: 1% – 10%
- Max swap fee = current loan fee
- Dynamic: depends on trade size and gas pressure
- Designed to reduce sandwich attacks and stabilize pair health
LP Mechanics
- 20% of each loan deposit is added as liquidity to the pool
- The LP position belongs to the debt owner and continuously earns swap fees
- When the borrower repays during the loan term, the LP position associated with the loan is burned and they receive back their initial deposit minus loan fees
- If the borrower does not repay within the time window, the loan can be cancelled and the borrower can withdraw the LP position linked to the loan, remaining exposed to the pool via LP instead of facing liquidation
- Combined with dynamic swap fees and loan-generated liquidity, this design can result in more competitive yields for LPs than traditional AMMs
Build on Palmyr
Whitepaper v1
Read the Palmyr Whitepaper v1 (preliminary release) for a deeper look at the 80/20 model, swap and loan fee design, and governance parameters. All details are subject to change as the protocol evolves.
📄 Open Whitepaper v1 (PDF)Documentation Soon
Technical documentation and integration guides are coming soon.
GitHub Soon
Public repositories and SDKs will be available soon.
Contact
Get in touch
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