The Paloma Blockchain unleashes its magic with the much-anticipated launching of leverage bots for Curve’s Llamalend lending markets. Aptly called Squeeze, these leverage bots enable traders to squeeze their current holdings to get maximum leverage of up to 10 times. In this AMA episode, Taariq Lewis @LewisTaariq, CEO of VolumeFi (volume.finance) talks about this newest addition to Palomabots that aims to simplify leverage trading and eliminate the threat of hard liquidation with automatic repayments when the loan health falls below a certain threshold. There will be zero fees charged to use these bots except for gas. Hints of a $100 giveaway await participants in the next AMA on Twitter spaces to try out Squeeze.
Paloma’s upgrade to v1.15 and Pigeon 1.12 delivers gravity nonces for cross-chain execution and message relaying, in preparation for the launching of Paloma’s GRAIN token to multiple chains and DEXs. The ongoing work with Pigeon Feed ensures that validators can claim rewards for successful relay execution and trade out on the target chain.
The introduction of bridge tax and limits allows for a gentle introduction of the GRAIN token to the market as the chain scales up liquidity and builds up demand for Paloma’s functionality.
The host thanks all listeners to Volume’s Twitter Spaces. He shares a brief background about Volume.
He describes Paloma as a cheaper and faster version of Axelar, built on the Cosmos SDK chain.
Paloma was upgraded to version 1.15 last week delivering gravity nonces for cross-chain execution and message relaying.
Pigeon upgrade to 1.12.0 integrates the same improvements as the launching of the GRAIN token is nears launch.
Compass EVM upgrade to version 1.00 has added new features to retry deployments during upgrades. This is an important development as the light client controls all contracts on the target chain.
Pigeon Feed is how relayers get paid in gas for executing messages. Drawing a similarity with Axelar, Taariq states that Axelar relayers get refunded in gas and subsidized with Axelar tokens, while Paloma validators are rewarded in GRAINS that can be traded out on the target chain.
This process allows Paloma to build a healthy market for GRAINS.
Taariq emphasizes the importance of having liquidity for the GRAIN token to attract more users to Paloma. The ongoing work on Pigeon Feed ensures validators can claim their GRAIN token for successful relay execution.
The team is working on the bridge tax from the Paloma Cosmos side to the EVM side. Taariq explains it is necessary to have a bridge tax as the chain prepares to launch GRAIN. This feature, while not permanent, will be put into governance and will be a part of launching initial pools.
Users can quickly liquidate their tokens once they cross over. The bridge tax is an added incentive for securing the network.
The proposal to lower bridge limits is under development and will also be put into governance. As GRAINS come online and cross the bridge, the limit is a safety measure that ensures the bridge does not take too much pressure in case of bugs and issues. This will be available for any token creator on Paloma, not just for GRAINS.
These two features will allow for a gentle introduction of the GRAIN token to the market as the chain scales up liquidity and builds up demand for Paloma’s functionality.
Taariq announces that the Llamalend bots are live but cautions that they are still in testing.
He makes a distinction that these are leverage bots and not lending bots.
What does a leverage bot do?
If users do not monitor their leverage positions closely, the risk of being hard liquidated becomes a real possibility. Everybody loves leverage because they want to do it, according to Taariq, but everybody hates leverage because they don’t want to do the work needed to monitor the position.
LlamaLend bots bring Paloma to Curve’s LlamaLend lending markets. Curve is a major client of Volume and Paloma’s major bots are empowered by Curve. Taariq cites that Paloma’s TWAP bot for Curve is one of our most successful bots with $28 million in transactions in the last six months and $3 million with the Euro ETH Off-Ramp bot for the same period.
Paloma brings its expertise with Curve contracts when LlamaLend launched this year. Llamalend caters to the permissionless lending markets on Curve. Users can set up the parameters and deploy the lending pool.
Currently, LlamaLend lending markets only use crvUSD as token one, and token zero can be any other token. However, a Curve AMM pool is also required to get a price oracle. Paloma is now building bots for Llamalend markets with crvUSD, ETH, wrapped ETH (wETH), wrapped stETH wstETH, wrapped Bitcoin (wBTC), Puffer ETH (pufETH), Threshold Bitcoin (tBTC) and sUSDe as the first launch bots.
Llamalend bots on Curve are called Squeeze bots. Paloma aims to make leverage as simple and as easy as possible.
Why are they called Squeeze bots?
Users set the parameters up to the x amount of leverage they want.
That liquidity is locked into the Curve contract and Paloma validators will monitor the position. If the price falls below a certain position, Paloma will unwind the position.
Taariq notes that the hardest thing about leverage is users may not know how to get out in time to avoid the risk of liquidation. The secret to leverage is reducing exposure because prices change back and forth.
The Paloma blockchain will unwind or repay your position. Users can pre-determine how much they want to repay, from 10%, 25% or 50%. Users can take any token and lever up on ETH, for example. With ETH coming out better with its work on ETF, traders would want to take a long position and lever up.
The Llamalend bots will take a parameter and if the loan health goes down, validators will automatically repay your position, and reduce exposure until the loan health improves.
This is the holy grail, Taariq states, and the magic of the Paloma blockchain.
Taariq announces that Volume will be doing a special giveaway of $100 to celebrate and get people started on Squeeze bots. The mechanics for the $100 giveaway will be announced in next week’s AMA.
There are no fees to pay, only gas to use Paloma’s Squeeze bots.
He invites everyone to visit
palomabot.ai
and
to check out the list of Llamalend bots. The team is still debugging and shipping more updates. More announcements will be made when the bots are ready to launch.
Taariq thanks everyone for tuning in today and extends a big congratulations to the validators and the Paloma community.
More announcements will be coming next week on LLamalend and special giveaways to get started with Leverage.
Stay tuned for the next AMA!
To find out more about Volume, check out Volume Finance (
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), and follow us on Twitter (@Volumefi). Check out Paloma Chain on
(
), follow them on Twitter (@palomachain), and join the flock on Discord (
). Coo!