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Quietly innovating a trillion dollar industry

  • Over the past year, Charm has pioneered new ways to create liquidity within DeFi, and its efforts led to the creation of a new industry for Decentralized Market Making Strategies (DMMS).
  • DMMS is the practice of using market making strategies to create liquid markets for DeFi tokens, and to help Liquidity Providers (LPs) unlock new sources of income.
  • Charm’s Alpha Vaults are the first to use market making strategies in DeFi. They are also the easiest way to provide liquidity on Uniswap V3.
  • Alpha Vaults have been live on Mainnet for over 8 months. They remain the best performing, least volatile, longest running, and most robust LP vault of its kind.
  • Alpha Vaults are now sufficiently robust to be used as a key building block within DeFi.
  • The easiest way to provide liquidity on Uniswap V3.
  • The best performing, and least volatile LP vault for Uniswap V3.
  • The most transparent product of its kind.

Remained robust without downtime, performance issues, or security incidences

  • Alpha Vaults are the only major Uniswap v3 vault provider without any security incidences, despite being the first and one of the most widely recognised vaults of its kind.
  • The market prices of the underlying consistently stayed within the middle of the ranges chosen by the vault despite high volatilities. This meant LPs were able to collect Uniswap fees AND minimise capital losses.

Generated sustainable long term returns, with low volatility

  • On-chain data shows Alpha Vaults is still the best performing LP vault since launching on Mainnet, with the lowest volatility.
  • It has outperformed full range LP, and has recently outperformed HODL.

Offered vault strategies that are 100% transparent, and verifiable on-chain

  • Alpha Vaults’ source code and strategies are available on-chain, which means anyone can verify the vaults’ performance metrics, strategy, and infrastructure.

Opened up a large number of use cases for Alpha Vault shares

  • The properties above mean Alpha Vaults is one of the most decentralized vault products within DeFi, with Alpha Vaults shares being the most transparent, best performing, and least volatile asset class of its kind.
  • The shares (which are ERC20) can therefore be used by anyone to build their own decentralized products, and this opens up a large number of use cases for Alpha Vault shares.

Allowed LP risks to be quantified

  • By building on Uniswap V3, it is possible to mathematically quantity LP risks, as shown by Guillame et al, Pteris et al, and Kyoronut et al (for example).
  • As a result, even better market making strategies can be built in the future.

Contributed to DeFi’s growth by facilitating deep liquidity and cheaper trades

  • By building on Uniswap V3 and consistently concentrating liquidity around the market price, Alpha Vault can amplify the benefits of concentrated liquidity to provide deeper liquidity and cheaper trades.
  • Alpha Vaults can therefore create real value by increasing the liquidity of all types of asset assets marketed on Uniswap V3.



Using the tools of finance to create value in the real world

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