FAQ

What is Logarithm Finance?

Logarithm Finance is a decentralized liquidity management and market-making protocol built to achieve the highest available capital efficiency on the market by hedging exposure to volatile assets.

Why do I need Logarithm Finance?

To profit from market making activities without constantly managing your positions.

How does Logarithm Finance work?

Logarithm Finance has developed its hedging model to avoid volatile assets' price exposure by shorting them with on-chain perps. The protocol relies on the internal state of the AMM and derivative DEX to determine the current exposure of position and choose the right size for the hedge.

Do I need to provide liquidity to AMM?

No, you only need to deposit USDC to Nautilus Vault of choice and track your position using dashboard indicators. After that, the protocol will do the rest.

Do I need to pay gas?

You only need to pay gas for depositing and withdrawing funds from Nautilus Vaults.

How can I be sure that my funds are safe?

We will conduct multiple audits of our contracts to ensure funds are safu. However, the risk of attack still exists among any crypto protocol, so please manage your size.

What is $LOG?

$LOG is a governance token of Logarithm Finance.

Can I run my personal vault?

We do not think many people will be interested in personal vaults. That's why we are going to launch various vaults with different underlying pairs to satisfy any risk appetite.

Who pays LP fees?

Market participants pay fees to swap assets. Basically, market volume creates fees. You can learn more about LP fees here https://docs.uniswap.org/concepts/protocol/fees.

What happens if I want to withdraw my liquidity?

You can withdraw liquidity from vaults anytime. After withdrawing the liquidity, the protocol will rebalance the position.

What happens if the market is volatile?

Due to Arbitrum's low transaction fees, rebalancing can be done very frequently to eliminate price exposure, even during the highest price fluctuations. The protocol will adjust the position based on on-chain data.