Peanut enters DeFi liquidity management market with Smart LP
Dear community,
It’s been more than half a year since Uniswap launched the third version of its protocol and introduced a new killer AMM feature — concentrated liquidity, giving individual LPs granular control over what price ranges their capital is allocated to.
Individual positions are aggregated together into a single pool, forming one combined curve for users to trade against.
Along with the updated API and SDK, this new feature opened a gate for developers allowing them to build dapps on top of the Uniswap protocol.
However, providing liquidity to Unswap v3 isn’t as simple as it was before. New risks and complications came along with the new opportunities — setting up price range, using the proper fee tier, monitoring the markets, having an NFT to represent your LP position, it can be overwhelming for new users.
If one chooses a narrow price range his liquidity will become inactive and will be swapped into a less liquid asset until the price range is updated manually again.
On the other hand, if one sets a broad price range the return on investment will be times lower.
That’s exactly the problem our team has been focused on for the last few months.
Today, Peanut is excited to announce Smart LP, an automated tool to actively manage your digital assets within Uniswap V3 pools.
Why do I need an automated liquidity manager?
Our automated liquidity manager is a tool that runs your liquidity on Uniswap v3 on your behalf, while you can have a rest and enjoy your life.
It’s an automated algorithm that works in tandem with our smart contract and that leverages a set of sophisticated rules to adjust price ranges within a certain Uniswap v3 pool based on current market conditions.
This set of rules along with some custom logic is a key feature we’ve been testing and improving for a few months. It’s like a secret recipe for Coca-cola drink, which brought it to success.
As of today, our logic consists of 7 market indicators, that are mixed to eventually update the configuration of the SmartLP smart contract. ETH volatility index is one of the 7 indicators just to give you a hint.
How many pools at launch?
To ensure quality and reward initial providers of liquidity, we launch the product with ETH-USDT 0.3% pool only. To cover other trading pairs and different investors’ risk appetites, more pools will go live in the near future, however, their performance fee will be market-based.
What return can I receive with Smart LP?
The trading strategy has indicated an estimated APR of ~260%. During periods of high volatility in the market this indicator was approaching 500%.
To come up with the net APR rebalancing and performance fees as well as a risk of impermanent loss need to be taken into account.
Please note past performance does not guarantee future returns.
A transaction fee to re-arrange the position within the Uniswap V3 pool is covered by the Smart LP protocol, thus providing an extra saving if one were to perform it on their own.
And we do believe you will save hours of sleep and leisure time, as you don’t need to be online all the time anymore.
Security again… or why is the estimated gas fee so high?
Security of your funds is our key priority. To minimize and eliminate opportunities for an attacker a second layer transactions the smart contract was designed with .
Smart LP code was audited by Ambisafe, one of the most experienced security firms in blockchain space, founded in 2013.
You can find our audit report here.
We appreciate the security focus, however, will there be any refund of the gas fee?
Yes, the initial 100 users who deposit 5000$ or more (translated into USD at the time of your deposit) will receive a rebate (to be paid in USDC or USDT) of gas fees to make sure a deposit transaction fee does not exceed 100$.
For example, you will receive 150 USDC of a refund if an indicated transaction fee as of the time of your deposit of 15,000$ has been an equivalent of 250$ (as per the transaction hash details).
You can track them being processed from the following wallet
0x6727f2A74ae1db3d50F3232925164021b02DaECC
Summary
If you have more questions please see FAQs or feel free to join our Telegram community and get in touch with our admins.
