Summary:
Intro
Unipilot is a concentrated liquidity manager (CLM) which manages liquidity positions for users and projects alike, selecting the optimal range, auto compounding earned fees and triggering rebalances when necessary.
Background
The go-to DEX for traders and LPs remains Uniswap v3. With its concentrated liquidity feature, liquidity providers have the ability to select discrete ranges for their capital, opening up the door for vastly improved capital efficiency which can lead to a much greater depth of liquidity from the same amount of capital.
However, when we crunched one-month of data we found that for the top pairs by TVL on Uniswap v3, 23% of liquidity was out of range, rising as high as 41% for some pairs. For projects, this means poor capital efficiency, costly liquidity provision and erratic price behavior. For your community, it can mean losses from the resulting high slippage and panic when the price drops due to weak liquidity.
Features:
Benefits of using Unipilot
When you partner with us, we will create an Actively-managed vault for your token pair METIS/WETH on Uniswap v3. You are free to decide how much capital you would like to migrate to this vault.
We will use backtesting of numerous variables to determine the best range for your capital, allowing you to achieve greater capital efficiency and reduced slippage with the same dollar value of liquidity. Unipilot will rebalance your position automatically into a new range whenever necessary, so you will not need to monitor your position, analyze which range to use nor pay the gas cost for the rebalancing. Additionally, earned fees will be compounded back into your active position regularly to further enhance capital efficiency.
We can also facilitate liquidity mining via our farming feature if desired. This would allow you to incentivize liquidity provision from your community while only rewarding those providing active, concentrated liquidity.
Case Study
Our partnership with Metavault.Trade involved the project moving 20% of their existing Uniswap v3 liquidity to Unipilot. This led to a 30% drop in slippage (from 2.4% to 1.7%) during large trades and reduced the time and costs required for the project to manage their liquidity. Additionally, it made it easier for the Metavault community to add their own liquidity of their token via the Unipilot interface.
Unipilot specs
Liquidity providers using Unipilot are in full custody of their liquidity, and deposits/withdrawals are permissionless.
No upfront fees or additional cost for the partnership. 10% of swap fees are taken upon each rebalance to pay for rebalances & operational costs.