Introducing: SteakHut Liquidity V2

SteakHut Finance
7 min readNov 21, 2023

SteakHut is redefining on-chain liquidity, developing a unique liquidity provisioning platform that provides users unparalleled control over their liquidity. This is the next generation of active liquidity management.

SteakHut Labs presents SteakHut Liquidity V2, a first-of-its-kind decentralized market-making platform for Web3 that redefines what it means to be a liquidity provider and redefines the entire liquidity landscape of Web3.

Powered by SteakHut’s novel smart contracts we have created the most composable and versatile market-making and liquidity management platform made openly available across Web3.

The introduction of SteakHut Liquidity V2 enables anyone to create and manage sophisticated market-making strategies across all key concentrated AMMs. This is all made possible directly from the SteakHut platform in a completely permissionless non-custodial manner.

SteakHut Liquidity V2 at a glance:

· Automated liquidity strategies: Access automated liquidity strategies, breaking down the barrier of entry to concentrated liquidity, back tested and engineered to keep your liquidity optimized.

· Permissionless vault creation: Effortlessly create and manage your own liquidity vaults directly through the SteakHut platform.

· Composable liquidity distribution: Utilise our flexible smart contracts to deploy up to 20 liquidity ranges per vault and enjoy cross-fee tier liquidity provisioning.

· Increased capital efficiency: Optimise your liquidity with SteakHut, automatically reposition and rebalance liquidity. This contributes to creating deep and capital-efficient markets for your tokens, all managed seamlessly from a single platform.

· Concentrated liquidity farming: Boost your liquidity rewards by earning additional yields on your concentrated liquidity positions through SteakHut’s farming options.

· Earn performance fees: Create and manage your own liquidity strategies, and share them with your community to start earning performance fees.

The Downfalls of Traditional Liquidity

SteakHut liquidity is a necessary response to the many downfalls that protocols and liquidity providers face across traditional liquidity options:

Fragmented Liquidity: Liquidity has become fragmented across blockchains, DEXs, and price ranges.

Stagnant Liquidity: In constant-function AMM models, liquidity is spread thinly across an infinite price range, meaning liquidity is deployed inefficiently, leading to lower efficiencies and lower swap fee rewards.

Expensive Liquidity: The traditional approach to liquidity is a costly endeavor for protocols seeking liquidity. Liquidity is deployed in an inefficient way and token emissions are used to incentivize liquidity in a model that introduces inflation, high costs, and timely off-chain processes for liquidity seekers.

Complex liquidity: Next-generation concentrated liquidity AMMs drastically improve upon the downfalls of traditional liquidity, but often at the cost of added complexity. Concentrated liquidity can make it difficult to manage and optimize liquidity.

Impermanent loss: Concentrated liquidity AMMs introduce further risks to LPs, with a large majority of LPs receiving negative returns after factoring in impermanent loss. SteakHut’s analytics suite helps liquidity providers monitor their liquidity with powerful insights.

Time-intensive liquidity: Concentrated liquidity removes the set-and-forget liquidity options LPs have grown accustomed to. In order to optimise liquidity, LPs are forced to manage, redistribute and reinvest rewards manually.

Re-envisioning Liquidity

SteakHut Liquidity is your platform for active liquidity management and decentralized market-making, designed to provide you with unparalleled access to custom liquidity strategies across all major concentrated liquidity AMMs.

We have created SteakHut with liquidity providers in mind and curated an experience that offers both retail-friendly and institutional-grade market-making solutions for managing on-chain liquidity. With SteakHut Liquidity, you have access to the most composable and flexible smart contracts available within the Web3 ecosystem, giving you unprecedented control over your liquidity.

Powered with our market-leading dApp, the SteakHut platform will make sophisticated market-making tooling readily available across the Web3 landscape for the very first time.

Liquidity providers will be able to access a range of automated liquidity strategies across all key CLMMs directly from the SteakHut dApp. Liquidity providers can join custom strategies or easily deploy their own strategy and have full control over their entire portfolio directly from one specialized platform.

SteakHut Liquidity V2 is fully permissionless. Deploy your own pools, select up to 20 liquidity ranges, and have full control with our inventory management tooling.

Creating the Liquidity Layer of Web3

SteakHut is creating “the liquidity layer of Web3.” Our novel smart contracts have been designed to allow cross-compatible liquidity management with all key CLMMs across multiple blockchains. This will enable liquidity providers and marker-makers to effortlessly manage and optimize their liquidity across all major AMMs and blockchains with a single dedicated platform.

Users can easily switch between blockchains and CLMMs managing a diverse portfolio of liquidity strategies with ease. SteakHut will be debuting on the Avalanche blockchain before deploying on Arbitrum One and Ethereum main net, and expanding our support across all major blockchains and CLMMs.

The SteakHut Ecosystem:

Liquidity Providers

SteakHut Liquidity provides users with a range of in-house liquidity strategies enabling liquidity providers to automate and optimize their liquidity across any key CLMM.

Many liquidity providers will be accustomed to depositing their tokens into a liquidity pool and passively earning swap rewards in a model popularised by Uniswap V2. SteakHut offers LPs a range of “set-and-forget” style liquidity options built on concentrated liquidity AMMs.

Once deposited, your tokens will be rebalanced and reinvested automatically by our contracts. This will work to ensure that your liquidity always operates within the bounds of the strategy you choose, saving you time and gas having to manage your own liquidity daily.

SteakHut’s boosted farms also allow users to stake their SteakHut LP token to earn additional rewards in the form of $STEAK tokens.

Additionally, liquidity providers can create their own liquidity strategies tailored to their needs.

Liquidity Managers

Liquidity Managers are users who create and manage liquidity strategies on SteakHut. Liquidity Managers have access to a suite of advanced liquidity and inventory management tooling.

Liquidity managers are able to easily create and manage custom strategies directly from the SteakHut dApp.

Unique strategies can be created for the user's individual needs or liquidity managers can create publicly available strategies accessible to all liquidity providers and earn performance fees.

Liquidity Seekers and Protocol Treasuries

SteakHut Liquidity is built to help create deep liquid markets for tokens across the Web3 landscape. The SteakHut platform allows for protocols and DAOs to create markets and attract liquidity in a permissionless, decentralized, and non-custodial way.

Liquidity managers have access to fully customizable tooling enabling unique strategy creation and management across all key CLMMs and blockchains from the SteakHut platform. Managers can also set deposit limits, whitelist deposits to select addresses, create both public and private vaults, and set performance fees.

SteakHut’s liquidity as a service (LAAS) feature offers a new primitive to create liquidity strategies enabling protocols to reach their liquidity goals. Protocols can also choose to work directly with SteakHut to help tailor-make strategies and incentivize vaults with token emissions.

SteakHut Liquidity Features:

Permissionless Vault Creation

SteakHut makes it completely permissionless to create and manage a custom liquidity vault. Liquidity providers can easily deploy a liquidity vault directly from the SteakHut platform. In a few steps, liquidity managers can customise their unique vault deploying a strategy on any key CLMM.

When creating a vault, the users can also opt to create either a private or publicly accessible vault and control the management fee to earn rewards for managing strategies.

Multiple liquidity positions

With SteakHut Liquidity, liquidity managers are able to deploy up to 20 concentrated liquidity ranges within a single vault. Being able to manage multiple ranges within a vault allows liquidity managers complete flexibility over creating sophisticated market-making strategies tailored to their objectives.

Cross-fee tier vaults

Vault strategies can simultaneously allocate liquidity across multiple token fee tiers managed within a single vault. This can allow for more sophisticated and optimized liquidity provisioning as trading volumes often trade across multiple fee tiers for a given token pair.

SteakHut’s support for multiple fee tiers allows trading to be facilitated automatically across multiple fee tiers within a single vault.

Inventory Management: Holding and Swapping

The liquidity management suite of tooling allows liquidity managers to actively manage a liquidity strategy dynamically with market conditions. This will allow the liquidity manager to deploy risk management to their strategies and more actively deploy capital.

Holding allows a strategy manager to remove liquidity and hold the tokens securely within the vault. The manager can choose which allocation should be deployed at any one time. Tokens are held securely within the vault awaiting utilisation in line with the manager's strategy.

Swapping tokens also allows flexibility in liquidity management allowing the strategists to alter the vault ratio of tokens as required. Slippage limits and DEX aggregation allow for swapping to be complete with minimal impact and controlled by the manager.

Dedicated data and analytics suite

SteakHut’s subgraph allows liquidity providers and managers instant access to all key metrics and insights into their liquidity strategy. This allows users to reliably track the performance against key benchmarks, view token compositions to create hedging strategies and review revenue data.

SteakHut Partners

SteakHut has successfully completed a strategic seed round to facilitate our ambitious projects of re-envisioning liquidity and creating “The Liquidity Layer of Web3.” The funding will supercharge the development of the SteakHut platform that benefits users across the entire Web3 landscape.

SteakHut’s strategic funding round has been led by Varys Capital, our partners include Blizzard, Avalaunch, with prominent angel investors including Coinflipcanada (of GMX), Hansen (of BenQi), and Ironboots (of Camelot DEX). Our goal was to create a highly strategic round to bootstrap the success of SteakHut.

Wen SteakHut Liquidity V2

SteakHut Liquidity V2 is scheduled to be released in Q4 2023. SteakHut will be debuting on the Avalanche blockchain supporting Uniswap V3, before expanding to support other key AMMs.

Security is a key focus at SteakHut. We pride ourselves on always pushing security and developing contracts that we are proud to bring to our community. SteakHut Liquidity is currently working closely with Omniscia in undergoing extensive smart contract auditing, which will be released to the public in the coming weeks. Omnisica is a reputable service trusted by the SteakHut team.

SteakHut Liquidity V2 is just around the corner.

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