CVP Proposal: Steer Protocol

Approved CVP
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Introduction

Steer is a decentralized computing protocol built with the goal of addressing the challenges of infrastructure and data in building, securing, and deploying web3 dApps including Automated Liquidity Management for Concentrated Liquidity (CL) pools and more.

With Steer Protocol, Metis community can -

  1. Build on-chain automation using 20+ programming languages.
  2. Connect them to secured data sources off-chain or on-chain using the Steer data marketplace,
  3. Execute on-chain using Steer infrastructure.

Steer Protocol Currently offers two solutions -

  1. Off-chain compute platform that can be leveraged by protocols or devs to build web3 dApps including Automated Liquidity Management, Automating Loan Payments, Asset Management, Automated Governance, Automating Cross Chain Actions, Automatic Trading Strategies, Automating Protocol Operational Tasks like reward distribution, airdrops, and more.

  2. We have built Active Automated Concentrated Liquidity Management that uses Steer Protocol off-chain compute infra with a combination of multi-position automated strategies in a non-custodial, permission-less open ecosystem to manage liquidity on Concentrated Liquidity pools. Currently, Steer automated strategies are deployed on concentrated liquidity pools across 12 chains, 8 AMMs, and over 260+ CL pools including Maia Dao on the Metis chain.

    Steer Protocol ALM (Active Liquidity management solution) stands out by combining the power of off-chain computing with multi-position automated strategies, all within a secure and deterministic multi-layer execution framework. This unique approach not only enhances investment returns but also prioritizes the security of all participants in the ecosystem.

This proposal aims to achieve Community Verified Project (CVP) status, with the primary goal of facilitating builders and the broader Metis ecosystem community in rapidly and securely developing and utilizing products using Steer Infrastructure.

Technicals On Concentrated Liquidity ****(CL) & Steer Protocol ALM Solution

Concentrated liquidity presents a host of challenges that DeFi platforms and liquidity providers must navigate adeptly. Properly managing liquidity pools is paramount, as imbalances can lead to inefficient trading and reduced capital efficiency. Additionally, mitigating impermanent loss (IL) is a crucial concern, as it can erode the value of assets within a pool. Implementing effective incentive programs to attract liquidity providers and ensure a vibrant ecosystem is another challenge, as striking the right balance between incentives and sustainability can be intricate. In essence, concentrated liquidity demands a delicate and strategic approach, encompassing smart pool management, IL mitigation strategies, and sustainable incentive structures to foster a thriving DeFi environment.

Steer Protocol addresses all these issues via Smart Pools. When an automated active liquidity management strategy is added to concentrated liquidity pools it’s called a smart pool. LP’s deposit into these smart pools and the underlying strategies manage liquidity based on the strategy, reinvest fees for auto compounding, spread the liquidity similar to the CEX order book for traders, and keep the liquidity in-range based on the current price of asset, creating a healthy environment for all stakeholder interacting with CL pool.

On top of it, the Steer Protocol provides detailed analytics for monitoring liquidity smart pool performance, allowing for informed decision-making. Moreover, Steer Protocol offers the flexibility to run incentive programs to attract liquidity through its in-house staking feature or via Angle Merkl reward integration.

Under each smart pool, Steer Protocol uses an optimized position manager contract to mint and manage LP positions. An automated strategy paired with the vault runs off-chain to determine how much to rebalance and where to make positions on the pool. Funds are provided by liquidity providers, whose deposits are minted as ERC-20 LP tokens representative of their deposit. These strategies are publicly open and can be developed or published by anyone.

Here is the link to our strategies - Keltner Channels | Steer Protocol

The technical implementation of Steer’s solution involves the following steps:

  1. The LP’s deposits the base assets into a smart pool.
  2. Steer’s smart vaults deploy the assets to the AMM v3 pool.
  3. The depositor has minted ERC-20 LP tokens representative of its deposits.
  4. Steer’s off-chain computations monitor market conditions and rebalance & mint positions to ensure maximum depth and fees.
  5. The LP tokens can be redeemed for the deposited base assets at any time.

Distinguishing Factors from Other Liquidity Managers:

  • Multi-position Strategies With Secured Off-chain Compute - Unlike rival protocols that limit users to just 2-3 positions, Steer Protocol masterfully manages an extensive array of positions simultaneously for ALM at a low gas cost due to off-chain compute. The resulting benefits will positively impact all stakeholders, as traders get lower slippage, liquidity providers can earn higher fee returns, and AMM can benefit from increased trading volume.
  • Minimize or outperform IL: Steer Protocol ALM is able to keep the value of the deposit close to that of holding the initial assets, and often outperform it.
  • Trustless & transparency: Steer Protocol ALM only autonomously manages the liquidity but can never remove it. All executions of Steer Protocol ALM can be monitored on-chain with full transparency.
  • Open Ecosystem: Steer Protocol provides LPs an option to create/deploy automated strategies on any concentrated liquidity pools via Steer SDK, so LPs don’t have to wait for an ALM to add those pools. Be your own market maker.
  • Advanced Analytics: Steer Protocol offers a wealth of insightful analytics that delve into the performance of automated strategies within Concentrated Liquidity (CL) pools. So that any analysis of the risks and rewards.
  • Secured Execution: Steer Protocol uses off-chain computing that relies on deterministic execution by all nodes and consensus to do any on-chain execution of strategies. On top of it, each smart vault has other security parameters added as well like Twap, slippage, max supply, and other checks.

Alignment with Metis

Steer Protocol’s off-chain computing capabilities present a valuable resource for the Metis ecosystem, offering numerous potential use cases beyond its existing functionalities. An illustrative example is automated active concentrated liquidity management, showcasing just one facet of the myriad possibilities.

Our current collaboration with Maia DAO has enabled us to support active Concentrated Liquidity (CL) management on the Metis chain, specifically within their Uni V3-style pools. We are now poised to expand our offerings, inviting the Metis community to leverage our compute platform for the creation of innovative products that can further enrich the Metis ecosystem.

The growth of liquidity-related activities, encompassing traders, liquidity providers, and automated market makers (AMMs), along with the broader Metis ecosystem and the protocols built upon it, has been progressing at a relatively modest pace. We hold a strong conviction that the Steer Protocol can serve as a catalyst, igniting the development and adoption of a diverse range of products within this ecosystem.

Audit:

Steer Protocol has been rigorously audited by Omniscia and Zellic on Feb 10, 2023 and May 2, 2023 respectively.

You can find the audit reports here:

Zellic: https://steer.finance/wp-content/uploads/2023/05/FILE_2279.pdf

Omniscia: Omniscia Steer Protocol Audit

Steer Team

Our global team has a proven competence in building and scaling products as well as companies in both web2 and web3 space with an average of 10-14 years of experience. Our executive team has previously worked together for 6+ years and has scaled various startups in the blockchain space from the ground up. Our overall team has strong product, business, operation, and marketing backgrounds with a lot of trusted execution between each other.

Reference

For more information regarding Steer Protocol and Steer Protocol ALM, feel free to
look at our docs and join our community. I’m also more than
happy to respond to any comments here from the Angle community regarding
this proposal!

Liquidity management Solution: Liquidity - Steer Finance
Off-chain Compute - https://steer.finance/
Twitter: https://twitter.com/steerprotocol
dApp: https://app.steer.finance/
Discord: Steer Community
Docs: Introduction | Steer Protocol

7 Likes
2

You often mention off-chain computing infrastructure. Can you explain in detail what this infrastructure is and how it works?

3

It is amazing to know that the Steer protocol will further boost the security in Metis. But I’ll like to know the strategies in place that’ll steer Metis off the bear market?

4

Good i have read through and seen how secure this is. But I’m still a bit skeptical because security is very very important. But aside that steer is a good project.

1 Like
5

This proposal by Steer Protocol is a game-changer for the Metis community. The integration of off-chain computing and automated liquidity management is a significant step forward. I would love to know how you envision the partnership between Metis and Steer Protocol benefiting the broader crypto community? What kind of dApps and products do you anticipate being developed using this technology, and how might they impact the DeFi landscape?

6

Steer Protocol redefines DeFi with innovative liquidity management, allowing multiple positions at a low gas cost, minimizing impermanent loss, and maintaining transparency. Collaboration with Maia DAO enriches the Metis ecosystem. Rigorous audits ensure credibility, promising a secure and transparent future for DeFi.

2 Likes
7

Excited to see the partnership between Metis and Steer Protocol, knowing these services that Steer offers.
Steer Protocol redefines DeFi with innovative liquidity management, allowing multiple positions at a low gas cost, minimizing impermanent loss, and maintaining transparency.

8

Hello.

  1. Can you provide more details about the security measures and transparency of Steer Protocol’s execution process? How do users have the assurance that their assets are secure when utilizing your off-chain computing capabilities?
  2. In your proposal, you mentioned a collaboration with Maia DAO and the Uni V3-style pools on Metis. Could you elaborate on the outcomes and successes of this collaboration, and how will you further expand and engage the broader Metis community to leverage Steer Protocol’s computing platform for innovative products?
9

Great proposal!! I love the off-chain computing concept which is essential to the growth and liquidity management of Metis community. With the off-chain computing how is users data protected?

10

Welcome to Metis community in advance

11

Can you share specific examples of how Steer Protocol’s off-chain computing capabilities have been utilized in real-world scenarios to enhance the performance of automated strategies within Concentrated Liquidity pools?

12

Impressive proposal! It’s great to see projects like Steer Protocol addressing the challenges of infrastructure and data in the web3 dApps space. Their focus on Automated Liquidity Management and the innovative approach of combining off-chain computing with multi-position automated strategies is a promising step in the DeFi world. This project has the potential to enhance the security and efficiency of liquidity management, which is vital for the entire ecosystem. Exciting times ahead for the Metis community and the broader DeFi space!

13

Steer Protocol’s proposal presents a groundbreaking opportunity for the Metis community. The fusion of off-chain computing and automated liquidity management marks a pivotal advancement.
I’m eager to understand your vision for how the collaboration between Metis and Steer Protocol will bring value to the wider crypto community

14

As Steer Protocol aims for Community Verified Project (CVP) status, how does the proposal outline plans to actively engage with and involve the broader Metis community in the development, enhancement, and governance of the protocol? Moreover, what initiatives are in place to encourage builders to contribute to the ecosystem using Steer Infrastructure, and how will the protocol adapt to evolving community needs and feedback?

15

To answer some of the general questions that have been raised:

What is Steer’s off-chain compute platform?

Steer uses a trustless node network that can run chunks of code compiled into webassembly called bundles. These bundles can fetch on and off-chain data, process data, and provide transactions to be executed on-chain. These bundles are stored on IPFS, run separately by multiple nodes who vote on the results, and once on-chain consensus is reached execution will occur. The results are all deterministic, auditable, and fast with webassembly, which gives us lots of flexibility with how we can automate and execute on-chain processes.

What strategies does Steer run?

One of the largest use cases for Steer has been automated liquidity management. Developers can create their own bundles of logic to determine the LP process. Steer has a number of in house strategies that we have been developing over time and using on other networks; including some based on bollinger bands, keltner channels, and donchian channels, which predict areas that the price is likely to trade in. We encourage anyone to develop their own strategies, and we have a backtester for bundles so users can test, develop, and research a strategy before investing. You can visit our documentation for more information.

Is Steer secure?

At Steer Protocol, we prioritize security. To ensure the highest level of safety, all contracts within our protocol undergo thorough audits conducted by Omniscia. Additionally, all rebalances are coordinated through multiple nodes within Steer Protocol’s off-chain compute network. This ensures that all actions taken must receive consensus before executing.

Funds deposited into vaults (a contract that manages funds tied to a specific implementation of a strategy) are withdrawable at any time with no fees. Our liquidity management vaults have internal safeguards against oracle manipulation and slippage checks.

How does Steer fit into the rest of the Metis ecosystem?

For protocols and users looking for automated market making, the fit is clear. Please reach out, we are happy to collaborate to develop the DeFi scene in Metis, as the space grows we all win. Steer’s off-chain compute features can be used as a primitive, and we are always looking for protocols and technology to leverage for better user experiences and opportunities.

We have some exciting things coming up like the release of our new UI for a more seamless experience, V2 strategies with modular liquidity distributions and trigger/event logic, and more!
Great questions, thanks

16

[ Open Ecosystem
Trustless & transparency are ery important for growth and development of protocols and I do commend Steer Protocol and wait to see it fulfil all it’s dreams.

18

Hello , I have a few questions:

  1. How can Steer Protocol’s off-chain computing platform be used to create innovative products that specifically address the needs of the Metis ecosystem?
  2. What are the potential use cases for Steer Protocol’s automated active concentrated liquidity management beyond the current support for Maia DAO’s Uni V3-style pools?
  3. How does Steer Protocol plan to foster collaboration and knowledge sharing within the Metis community to further accelerate the development and adoption of its products?