Mercurial Finance

Mercurial is building new liquidity systems to maximise the utility and yield of stable assets on Solana. As the DeFi ecosystem on Solana grows, there will be many different variants of collateralized, wrapped, and synthetic assets in the space. Our most immediate objective is to provide the best liquidity for all the major stable and pegged assets on Solana, which we started with our Mainnet beta.

Our focus will be on stable coins because they represent a major part of the DeFi demand across synthetic assets creation, swapping, and lending. Robust availability of stablecoin liquidity is crucial to any DeFi ecosystem.

Moving forward, we are focused on building dynamic vaults, which are market making vaults providing low slippage swaps for stables, while also improving LP profits with dynamic fees and flexible capital allocation.

Overview

Mercurial is building dynamic vaults, which are market making vaults providing low slippage swaps for stables, while also improving LP profits with dynamic fees and flexible capital allocation. You can read about dynamic vaults

Dynamic vaults will have the following key features:

• Low slippage swaps for stable pairs and forex pairs
• Dynamic fees that leverage market conditions to improve LP profits
• Flexible allocation to external platforms like lending protocols to earn additional interest and yield

By fully leveraging the power of Solana, Mercurial aims to build the next generation of market-making systems. We introduce two major innovations to the usual AMM model - dynamic vaults and dynamic fees.

• Dynamic Vaults: Instead of having pooled assets to sit idle in liquidity pools, we will eventually enable the deployment of pooled assets to yield generating opportunities across the Solana ecosystem. No longer will LPs have to choose between earning fees or yields from other farms — with Mercurial, both can be done at the same time.
• Dynamic fees improves profit potential of LPs while also compensating them for the IL risk in volatile environments. This protects LPs which encourages more participation from them, this leads to lower slippage and therefore increased trading volume which in turn results in more fees in aggregate for the system.