# YieldSpace AMM

### Secondary Markets

In order to provide easy on-chain access to what integrators can be confident is the *best rate,* an on-chain secondary market for iPTs is necessary.

In order to provide liquid secondary markets for Illuminate's iPTs, we've partnered with [Yield Protocol](https://yieldprotocol.com/) to utilize their upcoming variant of the YieldSpace AMM design.

### Pricing Theta

The YieldSpace design is a variant of the traditional $$x\*y=k$$ AMM, with an additional a modifier applied in between trades that ensures the price of a PT increases as time passes.

This constantly increasing price ensures that even in the absence of trades, the PTs themselves can trade at a consistent rate. Though the price of the PT may change, the rate itself remains consistent.

![](https://lh4.googleusercontent.com/Ld-ZTD_69tnCFoazeKWgMbIBFKqxqWUy2vMVnM4ZW5Qm3weXMwUoXtvkmlsszeF_oU6J4ekIXO7svkfsd5vwyTe25EPLThrRJOrZJUozOcQ6ZuEsy21UcfFkVRL5T0WlCGtYLtDr185NW8V9ASKw)

## Choosing A YieldSpace Variant

After significant due diligence, we concluded that the Yield Protocol YieldSpace implementation was both the most gas efficient and simple integration offered on the market. 

Element Protocol's YieldSpace implementation is then largely a direct implementation of YieldSpace, but in the Balancer ecosystem.

While Sense Protocol has innovated on YieldSpace with the SenseSpace AMM that accrues interest to the underlying asset while providing liquidity.

That said, YieldSpace is able to emulate the benefits of SenseSpace with minimal external or internal improvements that are likely to be implemented by Yield Protocol themselves.

With this context, the unique benefits of each are largely:

**YieldSpace:** Gas Efficient, Simple Integration

**SenseSpace:** Balancer Ecosystem Access

**Element's YieldSpace:** None? (Feel free to correct us!)


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