Revert Finance

OneTickDAO.eth and the Narrow Rangers

A first look into the RBN Uniswap v3 liquidity incentives programs

December 7th marked the end of the first big Uniswap v3 staker rewards program, on the RBN/ETH @1% pool, and we thought we’d take a look into how this went.

 [“0x1Dd01d51a7a3dfd9bC207f54AdE33591Bf2c76cd” 2016433]
[“onetickdao.eth” 1820733]
[“0x4bcae4ac7ecb042992ac730e2d5a61c3bbdc5e30” 642281]
[“0x05e09d942505764bca4475abf8efdbc21d1c535b” 517718]
[“0x14fd9243fb6645f9cb46a0e3e5984be9dfab6427” 500342]
[“0x03a82ee7997c87e7c6bd227fd3af77a3f175fb91” 488323]
[“0xfc93c3010ea5668c1b6900a9fe87168b63dec145” 424120]
[“0x8ae20fabeb608fd307fc1ea15a294340a547d501” 289860]
[“0x8ca440e6e8ad6dbcabec20df94dc19047c614a6c” 230739]
[“0xead3bb55a50af1a94a125b87d964060046a394e7” 209397]
[“0xbe9a69dfa2bca6bab58bdabe9dd1d099bc43868f” 199015]
[“0x531516ca59544bf8ab2451a072b6fa94adf5a88c” 156519]
[“0x455d7eb74860d0937423b9184f9e8461aa354ebb” 121667]
[“0x77eac8cadd22b5af72e0428900a175f9cc4f0d5f” 105132]

OneTickDAO.eth in the RBN pool

Charting the account’s activity as LP in the RBN/ETH pool is illuminating. First thing worth pointing out is that it created and exited a total of 121 positions in the 60 days the liquidity mining program was in effect.

onetickdao.eth: 1,820,733 RBN claimed. 98% of positions at min range.
Position deposit and withdrawals value with gas and rewards claimed included. Asset prices at the block height of each position exit.

It’s hard to hide a good strategy on the blockchain

While onetickdao.eth seems to be the first account using the strategy, it was promptly copied by others. Of the 14 analyzed accounts, we filter out for six that had 75% of all their RBN/ETH positions at the minimum possible range:

 [“0x1Dd01d51a7a3dfd9bC207f54AdE33591Bf2c76cd” 2016433]
[“onetickdao.eth” 1820733]
[“0x4bcae4ac7ecb042992ac730e2d5a61c3bbdc5e30” 642281]
[“0x14fd9243fb6645f9cb46a0e3e5984be9dfab6427” 500342]
[“0xbe9a69dfa2bca6bab58bdabe9dd1d099bc43868f” 199015]
[“0x531516ca59544bf8ab2451a072b6fa94adf5a88c” 156519]

The RBN community is not happy with the results

The RBN community has been notoriously dissatisfied with the results of the program and there is an ongoing proposal for the DAO to use it’s treasury to provide liquidity to a Uniswap v2 pool.

The Path forward for liquidity incentives

It seems to us that any other liquidity mining program that uses the v3 staker rewarder could be subject to the same dominating strategy. And it’s worth considering alternative reward distribution schemes for a different v3 rewarder contract.

How Revert will improve

While performing this sort of post-hoc analysis is fun and sometimes illuminating, it’s far from the actionable analytics we aim to provide. In the coming weeks we will be releasing features that will help anyone understand better what is happening in AMM pools in real time, as opposed to just the status of their own positions.

0x1Dd0: 2,016,433 RBN claimed. 75% of positions at min range.
onetickdao.eth: 1,820,733 RBN claimed. 98% of positions at min range.
0x4bca: 642,281 RBN claimed. 100% of positions at min range.
0x05e0: 517,718 RBN claimed. 41% of positions at min range.
0x14fd: 500,342 RBN claimed. 100% of positions at min range.
0x03a8: 488,323 RBN claimed. 0% of positions at min range.
0xfc93: 424,120 RBN claimed. 40% of positions at min range.
0x8ae2: 289,860 RBN claimed. 47% of positions at min range.
0x8ca4: 230,739 RBN claimed. 66% of positions at min range.
0xead3: 209,397 RBN claimed. 11% of positions at min range.
0xbe9a: 199,015 RBN claimed. 81% of positions at min range.
0x5315: 156,519 RBN claimed. 85% of positions at min range.
0x455d: 121,667 RBN claimed. 16% of positions at min range.
0x77ea: 105,132 RBN claimed. 57% of positions at min range.

Highlights from our analytics service for DeFi liquidity providers.