FAQ 🙋

What is Bubbly Finance?

Bubbly Finance is an AMM-based pre-market DEX. You can swap pre-market assets similar to Uniswap, allowing you to buy, hold, and sell without needing to lock liquidity until token delivery or finding specific buy/sell orders.

How do I buy a pre-market asset?

To purchase a pre-market asset listed on Bubbly, you can use tokens such as ETH or USDC. When the token launches, you can claim the tokens delivered by the seller.

How do I sell a pre-market asset?

To sell a pre-market asset, use a specific token as collateral to lock in the price. After the token launch, you must deliver the corresponding tokens to release your collateral and collect the profits.

What if the seller doesn't deliver the tokens?

If a seller fails to deliver, their collateral is transferred to the buyer as a penalty. The buyer receives double their principal as compensation.

However, our data shows that the average default rate among sellers is less than 10%, so risks are relatively low.

Should I hold my order until token delivery?

Yes, like other pre-market platform.

How can I provide liquidity?

Bubbly introduces an innovative AMM model called MLMM for providing liquidity in the pre-market. Liquidity Providers need to hold both spot assets and points/airdrops.

Unlike traditional AMMs, you only need to provide the spot asset initially and the tokens corresponding to points/airdrops after the token launch. This method is 200% more capital efficient than Uniswap.

Do Bubbly's LPs face impermanent loss (IL)?

Yes, Bubbly’s LPs face IL, exactly the same as in Uniswap V3.

What are the benefits of being an LP?

As an LP, you can use your points to earn additional yield without having them idle. LPs earn swap fees, which are 600% higher than those of Uniswap's LPs, and accumulate Bubbly points, redeemable for future tokens.

Additionally, your collateral is utilized in LRT protocols or other DeFi protocols, allowing you to continue accumulating points without giving them up.