So why use DefiPlaza’s CALM for project Ignition? ● CALM outperforms classic AMMs when there is price volatility ● Historically, XRD has been quite volatile with respect to USD / ETH / BTC ● Ignition pays out your original liquidity + fees with IL comp if below HODL ○ Ignition ONLY pays out fees if pair is in profit wrt HODL for user contributed token ○ CALM decreases the likelihood of user token amount ending below HODL ○ CALM increases the likelihood of getting fee payout ● CALM Ignition pairs will have competitive 1% trading fees ● We believe that DefiPlaza has the highest expected value for Ignition

1. Project Ignition
Why DefiPlaza is your best bet for Radix’s Project Ignition
v1.0
DefiPlaza team

2. Project Ignition executive summary
● DefiPlaza is one of the Radix exchanges participating in Project Ignition
● RDXW matches your xUSDC/xUSDT/xETH/xwBTC liquidity with XRD
● You get an instant 12.5-20% reward in XRD for a 9-12 months lockup period
● There is (limited) IL protection by RDXW in case prices move against you
● We believe our CALM algorithm maximizes your chances of profitability
○ CALM may put you in profit even when price moves against you
○ CALM reduces the extreme downside risk of XRD price collapse
● This pack demonstrates why DefiPlaza’s CALM is your best bet for ignition

3. Historic returns for Liquidity Providers (LPs) at Radix
● The Concentrated Asymmetric Liquidity Model (CALM) went live shortly
after Radix Babylon was launched, we may now analyze first actual results
● The objective of CALM is to outperform classic LP strategies over time
● We consider the ALR (Annualized Liquidity Return) metric
○ Measures the added value of providing liquidity versus simply holding the token
○ Incorporates both the collected fees and the impermanent loss on the position
● Results are based on Radix ledger data for all pairs with >10k$ liquidity on
DefiPlaza over the same time frames (time since CALM pair inception)
● Classic AMM is always paired 50/50 with XRD, DefiPlaza 50/50 with DFP2

4. Comparing DefiPlaza returns with classic AMM
DefiPlaza outperforms
Classic AMM outperforms
DefiPlaza mostly outperforms, sometimes by a LOT!

5. Example: First 12 weeks of Gable (GAB) on Radix
● Gable is a flash loan protocol on Radix, which launched a token distributed via
two-weekly airdrops to users staking XRD on their validator or taking flash loans.
● Initial liquidity was low, with high volatility and overall heavy price drops especially
around the times of airdrops. Overall GAB price dropped by a factor of 7x vs
XRD / DFP2 since it was launched.
● LP returns comparison is made between the following LP strategies
○ Investing $50 in DefiPlaza GAB LP and $50 in DefiPlaza DFP2 LP
○ Investing $100 into competitor GAB/XRD LP (classic Uniswap x*y=k pair)
○ Investing and holding $50 in GAB and $50 in DFP2
○ Investing and holding $50 in GAB and $50 in XRD
● Note that though DefiPlaza pairs are against DFP2 (Bancor style) rather than XRD,
the DFP2/XRD price hasn’t changed by much over this time period

6. DefiPlaza better than
HODL
Competitor worse than
HODL

7. Analyzing GAB liquidity strategy results
● Sharp initial decrease in value due to airdrop dumps
into a relatively illiquid market.
● Over time, CALM claws back the IL and returns to
profitability with respect to just holding the tokens
despite a 7x price drop!
○ DefiPlaza LPs saw an annualized return of +46% wrt hodl
○ Competitor LPs saw an annualized return of -45% wrt hodl
● CALM made the difference between making
money and losing money due to IL.
● Other typical strategies (ie using concentrated
liquidity) perform even worse than referenced
competitor over this period.

8. So why use DefiPlaza’s CALM for project Ignition?
● CALM outperforms classic AMMs when there is price volatility
● Historically, XRD has been quite volatile with respect to USD / ETH / BTC
● Ignition pays out your original liquidity + fees with IL comp if below HODL
○ Ignition ONLY pays out fees if pair is in profit wrt HODL for user contributed token
○ CALM decreases the likelihood of user token amount ending below HODL
○ CALM increases the likelihood of getting fee payout
● CALM Ignition pairs will have competitive 1% trading fees
● We believe that DefiPlaza has the highest expected value for Ignition

9. Keep CALM and Ignite your liquidity!
Ignition @ DefiPlaza
DefiPlaza blog
Telegram
X (formerly Twitter)
Official Radix Ignition site
Radix Ignition rules

10. Appendix: What is the CALM algorithm?
● Evolution of Dodo on Ethereum, can distinguish which trades increase impermanent
loss (IL) versus which trades decrease IL to LPs
● Exploits this fact by using different bonding curves (specifically different level of
liquidity concentration) for trades increasing IL versus those decreasing IL
● Employs internal price oracle tracking market price (similar to Curve tri-crypto)
○ No external price signal required so there’s no oracle attack / failure risks
● LPs can employ liquidity to either side of a pair, (nearly) single-sided
● Efficient smart contract implementation → low execution cost
● CALM works by consciously sacrificing trading volume for execution quality
● For exact details on the CALM algorithm, refer to our whitepaper