A Uniswap V3 automated liquidity management tool that uses a unique vault design combining lending and V3 pools.
Today, there are three main challenges when providing concentrated liquidity to Uniswap v3. First, positions fall out of range and require constant rebalancing. Second, swap fees during a rebalance can eat into profits for smaller investors and may generate a permanent loss on their capital. Third, ethereum gas fees can also be cost-prohibitive for smaller investors. Our hack was to create a vault that automates and maintains a 50/50 allocation to Uniswap V3 while still using concentrated liquidity and rebalancing with no fees or permanent loss. Unlike other existing active liquidity management protocols for Uniswap V3, ours uses a unique vault design that pulls assets from lending pools (compound) in order to rebalance and avoid swap fees. Furthermore, we have focused on three key areas for this hackathon: 1. Simple & easy to use UI/UX 2. Allow participants to earn income/interest from multiple sources (uniswap & compound) 3. Allow participants to keep more of their money by saving on swap and gas fees
How it's made
By using Ethereum we were able to develop smart contracts that interacted with both Uniswap and Compound interfaces. Investors add liquidity as a position into a vault. The system places a small portion of its position as concentrated liquidity in Uniswap v3 to earn interest. The system places the remaining funds in a larger position in Compound to earn interest. As the Uniswap position falls out of range, the system automatically rebalances using the funds across both Uniswap and compound