π Uniswap v3's business license expired on April 1st, sparking a massive wave of interest in Concentrated Liquidity Market Makers (CLMM).
Here's 8 reasons why concentrated liquidity (and Panoptic!) is the FUTURE of DeFi π₯οΈπ!
π Uniswap v3's business license expired on April 1st, sparking a massive wave of interest in Concentrated Liquidity Market Makers (CLMM).
Here's 8 reasons why concentrated liquidity (and Panoptic!) is the FUTURE of DeFi π₯οΈπ!
HODL vs. LP vs. Calls β which one's best?
Incoming backtest π
Imagine a market that only lets you sell assets, never buy...Could you be profitable?
That market isn't imaginary. That market is...Uniswap Liquidity Providing!
LPing = selling options, but what if users could SHORT LP tokens and effectively BUY options...?
Why are some pools good πΆ and other pools bad π?
The answer comes from breaking down LP profits into:
By comparing LPs to options, we discover parallel insights β let's explore!
We simulated LP performance for 21 popular Uni V3 pools (high TVL & volume). Results were surprising: LPs can be profitable! π’
Find out π
We analyzed simulated LP performance on ETH-USDC 0.3% pool. Results were surprising: the optimal width was wider than expected! π’
Find out π
How do you LP on Uni v3 with a Β±% range? E.g. if you wanted Β±30% should you do:
or
Let's find out! π
One of the core assumptions behind financial models is that prices follow a geometric brownian motion (GBM) β e.g. Black-Scholes. Does the price of the most traded asset in Uniswap v3 also follow a GBM? Let's find out! π