GammaSwap is a DeFi protocol on Arbitrum that lets users trade perpetual, option-like positions directly against AMM liquidity. Instead of relying on price oracles or traditional derivatives, it enables traders to borrow liquidity from pools to go long or short volatility itself. This design also creates a native way to hedge impermanent loss, turning LP risk into a tradable primitive.
At its core, GammaSwap connects two usually opposing groups: liquidity providers seeking protection and traders seeking asymmetric exposure. LPs earn yield while exposing their liquidity to hedgers, and traders gain structured positions like straddles or directional bets without synthetic assets. The system is designed to be capital-efficient, composable, and fully on-chain.
The $GS token underpins GammaSwap’s long-term incentives and governance. It’s used to align users, LPs, and protocol development through staking, emissions, and voting, while escrowed variants encourage long-term participation. Rather than being the product itself, $GS acts as the coordination and ownership layer for the ecosystem.
