Our mitigation pools are built on battle-tested protocols and proprietary algorithms to protect liquidity providers from volatility-driven losses, ensuring predictable returns and sustainable protocol growth.
LABS
Services
Impermanent Loss Mitigation Pool Design
We design and implement custom Automated Market Maker (AMM) liquidity pools with integrated impermanent loss protection mechanisms. Our solutions help DeFi protocols attract and retain liquidity providers by reducing their risk exposure.
Chainscore © 2026
key-features
ENGINEERED FOR STABILITY
Core Features of Our IL Mitigation Pool Design
01
Dynamic Hedge Ratio Algorithm
Proprietary algorithm continuously adjusts the hedge ratio based on real-time price volatility and pool composition, optimizing capital efficiency while maintaining robust protection against IL.
>95%
IL Risk Coverage
Sub-second
Rebalance Speed
02
Multi-Asset Vault Architecture
Secure, audited smart contract vaults supporting ETH, stablecoins, and major blue-chip assets. Built with OpenZeppelin standards and formal verification for maximum security.
100%
On-Chain Audits
ERC-4626
Compliant
03
Capital-Efficient Hedging
Leverage perpetual futures and options via integrated DeFi protocols (GMX, Synthetix) to hedge exposure with minimal collateral, maximizing LP yield potential.
Up to 5x
Capital Efficiency
<0.5%
Hedging Cost
04
Automated Rebalancing Engine
Fully automated system monitors pool health and executes rebalancing trades across DEXs (Uniswap V3, Curve) to maintain target hedge ratios without manual intervention.
24/7
Monitoring
MEV-Protected
Execution
05
Real-Time Risk Dashboard
Comprehensive dashboard for LPs and protocol managers showing live IL exposure, hedge performance, P&L, and capital allocation across all supported assets.
Real-Time
Data Feed
Multi-Chain
Support
06
Customizable Fee & Reward Structure
White-label solution allowing protocols to set their own performance fees, reward token emissions, and LP incentive models to align with their specific tokenomics.
Flexible
Tokenomics
2-Week
Integration Time
business-benefits
DESIGNED FOR GROWTH
Business Outcomes for Your Protocol
Our impermanent loss mitigation pool designs deliver measurable improvements in capital efficiency, user retention, and protocol revenue. Here’s what you can expect.
01
Enhanced Capital Efficiency
Increase the effective TVL in your liquidity pools by 30-50% through dynamic fee structures and concentrated liquidity mechanisms that maximize LP returns while minimizing idle capital.
30-50%
TVL Efficiency Gain
> 20%
Higher LP APY
02
Reduced LP Churn
Stabilize your liquidity base by reducing LP withdrawal rates by up to 40%. Our designs incorporate time-locked rewards, exit penalties, and hedging strategies that incentivize long-term commitment.
≤ 40%
Lower LP Churn
> 6 months
Avg. LP Lock-up
03
Increased Protocol Revenue
Capture a sustainable share of trading fees and arbitrage profits. We design fee distribution models that can boost protocol-owned revenue by 15-25% without negatively impacting swap volume.
15-25%
Revenue Increase
0.05-0.3%
Optimized Fee Tiers
05
Faster Time-to-Market
Go from concept to audited, mainnet-ready pool contracts in 4-6 weeks. We leverage battle-tested templates from protocols like Uniswap V3 and Balancer, customized for your tokenomics.
4-6 weeks
Deployment Time
Audited
Security Standard
06
Competitive Market Positioning
Differentiate your DEX or yield platform with a unique value proposition for liquidity providers. Attract professional market makers and funds seeking sophisticated risk-managed pools.
Key Differentiator
For LPs
Institutional
LP Appeal
Strategic Decision Analysis
Build vs. Buy: IL Mitigation Pool Development
A detailed comparison of the time, cost, and risk involved in developing a custom impermanent loss mitigation solution in-house versus partnering with Chainscore Labs for a production-ready system.
| Factor | Build In-House | Partner with Chainscore |
|---|---|---|
Time to Production | 6-12 months | 4-8 weeks |
Initial Development Cost | $150K - $400K+ | $50K - $150K |
Smart Contract Security | High Risk (Unaudited, Custom Code) | Audited, Battle-Tested Patterns |
Core Algorithm (e.g., Delta-Neutral, Options) | Requires PhD-level R&D | Pre-validated, Configurable Models |
Oracles & Data Feeds | Custom Integration & Maintenance | Pre-integrated (Chainlink, Pyth, API3) |
Ongoing Maintenance & Updates | Dedicated 2-3 Engineer Team | Optional SLA with 24/7 Monitoring |
Time to First Revenue | Delayed 6+ months | Weeks after deployment |
Total Cost of Ownership (Year 1) | $300K - $700K+ | $80K - $200K |
Risk of Protocol Failure / Exploit | Significantly Higher | Mitigated via Formal Verification |
how-we-deliver
STRUCTURED EXECUTION
Our Development Process
We deliver production-ready impermanent loss mitigation pools through a rigorous, four-phase methodology designed for security, speed, and seamless integration.
01
Architecture & Strategy
We analyze your tokenomics and liquidity needs to design a custom pool architecture. This includes selecting optimal bonding curves, fee structures, and rebalancing logic to align with your protocol's economic model.
2-3 days
Design Sprint
3+ Models
Architectural Options
02
Smart Contract Development
Our engineers build secure, gas-optimized Solidity contracts (0.8.19+). We implement battle-tested patterns from OpenZeppelin and incorporate your custom mitigation logic, ensuring robust on-chain execution.
OpenZeppelin
Security Foundation
Gas-Optimized
Code Priority
03
Security & Audit Readiness
Every contract undergoes internal review against common vulnerabilities (reentrancy, oracle manipulation). We prepare comprehensive documentation and test suites to streamline your formal audit with firms like CertiK or Quantstamp.
100% Coverage
Test Suite Goal
Audit-Ready
Delivery State
04
Deployment & Integration
We manage the mainnet deployment process and provide integration kits (SDK/API) for your frontend. Includes monitoring setup for pool health, slippage, and mitigation performance.
< 1 week
Integration Time
Full SDK
Client Deliverable
tech-stack
BUILT FOR SCALE
Technology & Protocol Integration
We architect your impermanent loss mitigation pool on battle-tested DeFi primitives, ensuring security, efficiency, and seamless composability from day one.
01
Automated Market Maker (AMM) Integration
Seamless integration with Uniswap V3, Balancer V2, or Curve for concentrated liquidity and custom bonding curves. We handle the complex oracle interfaces and fee tier logic.
< 100ms
Oracle Latency
0.05%
Min Fee Tier
02
Oracle Security & Data Feeds
Robust price feed integration with Chainlink, Pyth Network, or TWAP oracles. Includes heartbeat monitoring, deviation threshold checks, and fallback mechanisms to protect against manipulation.
99.9%
Uptime SLA
Multi-Source
Data Redundancy
03
Gas-Optimized Smart Contracts
Contracts written in Solidity 0.8+ using OpenZeppelin libraries. Every function is optimized for gas efficiency, reducing LP transaction costs by up to 40% versus unaudited code.
40%
Gas Reduction
Sol 0.8+
Language
04
Cross-Chain Liquidity Bridges
Enable liquidity migration and pool deployment across Ethereum, Arbitrum, Polygon, and Base using LayerZero or Axelar for secure cross-chain messaging.
4+
Networks
< 3 min
Bridge Time
05
Dynamic Fee & Reward Mechanisms
Implement programmable fee structures and incentive distribution using ERC-4626 vault standards. Automatically adjust rewards based on pool utilization and volatility.
ERC-4626
Vault Standard
Real-time
Adjustment
Structured Development Phases
Project Timeline & Deliverables
A transparent breakdown of our phased approach to designing and deploying a custom Impermanent Loss Mitigation Pool, from initial strategy to post-launch support.
| Phase & Deliverable | Starter (4-6 Weeks) | Professional (8-10 Weeks) | Enterprise (12+ Weeks) |
|---|---|---|---|
Strategy & Architecture Design | |||
Custom Smart Contract Development | Basic AMM Integration | Advanced Hedging Logic | Multi-Protocol & Cross-Chain |
Comprehensive Security Audit | 1 External Auditor | 2 External Auditors + Internal Review | 3 Auditors + Formal Verification |
Testnet Deployment & Simulation | Basic Functionality | Extensive Scenario Testing | Full Economic & Stress Testing |
Mainnet Deployment Support | Guided Self-Service | Full Deployment Management | White-Glove Deployment & Orchestration |
Monitoring Dashboard | Basic Metrics | Advanced Analytics & Alerts | Custom Enterprise Dashboard |
Post-Launch Support Window | 2 Weeks | 1 Month | 3 Months + Optional SLA |
Estimated Investment | $25K - $50K | $75K - $150K | Custom Quote |
Impermanent Loss Mitigation
Frequently Asked Questions
Get clear answers on our process, security, and outcomes for designing robust liquidity pools.
Our engagement follows a structured 4-phase methodology: 1. Discovery & Risk Modeling (1 week) to analyze your tokenomics and target risks. 2. Architecture & Smart Contract Design (2-3 weeks) using battle-tested patterns. 3. Implementation & Internal Audit (2 weeks) with formal verification where applicable. 4. Deployment & Integration Support (1 week). Total timeline is typically 6-7 weeks from kickoff to mainnet launch.
ENQUIRY
Get In Touch
today.
Our experts will offer a free quote and a 30min call to discuss your project.
NDA Protected
Confidentiality24h Response
Time to ValueDirectly to Engineering Team
No Sales Fluff10+
Protocols Shipped
$20M+
TVL Overall