Arbitrum + Diamond Protocol Twitter Space Recap
Over 1,000 people tuned in to Diamond and Arbitrum’s first Twitter Space last Friday. Our new product, Unibot, has been successfully deployed on Arbitrum for two months now, and even got to experience the change to Arbitrum Nitro.
We’re glad we had the chance to share our progress with the Arbitrum team and answer some of our community’s questions together.
https://twitter.com/arbitrum/status/1588223468700516352?s=20&t=2NeWfgdaz7SZ0tpzrf9lVg
Arbitrum is the trendy new kid on the block L2 built on top of ETH with over 1B in TVL and over 100 daps built on top of it. Unibot is one of the projects on Arbitrum. Built by Diamond Protocol, Unibot is a leveraged liquidity provision platform built on top of Uniswap v3.
In the space, we discussed Unibot’s progress and experience building on Arbitrum, as well as upcoming activities for the community. Revelo Intel beat us to the punch and summarized much of the space nicely. Here is a link to their roundup:
https://revelointel.substack.com/p/how-is-unibot-simplifying-the-lp?sd=pf
Here are some of the main points they captured from our conversation:
- To use Unibot, users provide liquidity in one token (currently USDC), and UniBot then lends the user a required amount of ETH from the lending pool to max out APR; This design acts as a buffer to any IL (impermanent loss) that user might face.
- Lenders can provide ETH into the lending pool to earn stable lending interest with 0 market volatility risk.
- UniBot allows users to create a net long/short position on ETH using leverage to profit from liquidity provision and directional market moves.
- The main idea is to provide users with a source of sustainable yield with minimized risk.
- To access UniBot, users must join Discord and get their wallet whitelisted first.
Unibot’s Main Advantages
- UniBot’s APR is exponentially higher because it’s built on top of Uniswap v3 instead of v2.
- V3 provided concentrated liquidity, so the APR is exponentially higher than V2. Unibot allows users to further increase their capital efficiency by using leverage. When V3 is seeing plain vanilla APR of 50%, Unibot users routinely see APR around 300–500%
- Competitors focus more on maximizing fees; UniBot’s goal is to maximize overall PnL.
- Automation and customization: traders can construct their own strategies, set up a stop loss/take profit for an open position, and have a customizable exit price.
- Low average slippage around 0.1–0.2%.
Closing Statements
The space ended with a discussion about the future. We’re planning to launch auto vaults soon, a self-executed UniBot strategy based on the preset backtested parameters) to lower the entry barrier for retail users by creating a “Set & Forget” LP mechanism that will be launched by the end of November.
We would also like to integrate more pairs into UniBot to increase the variety of options for the users. We are planning to IDO in Q1 2023, for which we want to solidify our community first to then reward them appropriately through different activities (airdrops included.)
In the end, both the Arbitrum team and Diamond answered some general questions that our community posted on Discord prior, like how it is building during this market.
To listen to the full conversation, go to:
https://twitter.com/arbitrum/status/1588223468700516352?s=20&t=2NeWfgdaz7SZ0tpzrf9lVg
To learn more, and be one of our OG users, join our Discord and get whitelisted: https://discord.gg/ta3hjdhXd6
