ParabolicParabolicDOCS
Risk & Vault

Liquidity & Market Making Vault

Protocol-owned MM vault — anyone deposits USDC, the algorithm market-makes, depositors share 80% of profits.

Parabolic bootstraps liquidity through a protocol-owned MM vault. Anyone deposits USDC, the algorithm market-makes, depositors share 80% of profits.

Vault algorithm
  1. 1
    Quotes around oracle — bid at oracle − spread/2, ask at oracle + spread/2 (1% default)
  2. 2
    Dynamic spread — widens 2× on 3% oracle moves, 3× on 8%+ (scoring plays)
  3. 3
    Inventory management — asymmetric quoting when skewed, scaling from 2× to 5× adjustment
  4. 4
    Game-phase awareness — tighter mid-game, wider at start/end/after scoring events
  5. 5
    Terminal convergence — reduces exposure in final 10 min, flat by final 2 min
  6. 6
    Multi-market allocation — more capital to high-volume games
Depositor incentives
Profit Share — 80% of vault profits to depositors, 20% to protocol.
Early Boost — Up to 1.5× multiplier in month 1, tapering to 1.0× after 6 months.
Lockup Tiers — 80% base → 85% (7d) → 90% (30d) → 95% (90d lockup).
Vault Points — Points = Deposit × Time × Lockup Multiplier. Potential future token claim.

Protocol seeds $500K–$1M at launch. A DMM partnership is a stretch goal, not a blocker — the vault handles all liquidity at 1–2% spreads, still far better than sportsbook vig.

Risk Management

Three layers protect platform solvency — liquidation engine, insurance fund, ADL.

Vault Risk Management

Seven layers protect vault depositors from directional losses during blowout games.

On this page

Related