Automate Scalable Off-Chain Strategies for Uniswap v3 with Steer Protocol

As many innovative and interesting protocols are created on the blockchain, new opportunities are created. New ways of investing, trading, staking, limited only by imagination. However, blockchain technologies come with their own set of caveats, which can make certain spheres of development much trickier.

Automation

It’s evident how big of a role automation plays in technology today. Tasks can be made more precise and efficient by simply having a computer do it. Automating things in smart contracts has proven difficult, the solution being L2 keeper networks.

These networks are able to provide the flexibility to automate on-chain processes such as running complex or gas expensive code and fetching off-chain data.

Here at Steer, we are working to create a platform to give people the tools they need to build.

How are we doing this?

• Providing a keeper network to help bring automation on-chain (if you are interested in getting early mining access join our discord)
• Providing a financial strategy-investment framework
• Creating a community that emphasizes results and innovation

Strategies

To illustrate how the financial platform works in the Steer ecosystem, we’ll use our first use case: automating liquidity management on Uniswap v3.

Say you wish to regularly analyze two asset prices, and accordingly make positions on a Uniswap v3 pool based on an algorithm you created. Steer is compatible with nearly any programming language, and you can upload your algorithm with any data sources needed, which will pass its output to an integration contract provided by Steer that will handle increasing and decreasing liquidity on the pool.

So what next? This strategy needs to be implemented on-chain with a vault to hold and manage funds. Anyone is free to deposit to this vault, and the liquidity provider’s holdings will increase with the success of the strategy. Generally, this community of investors will seek out strategies that are making high returns or are low risk, and strategy implementations with more TVL could help scale down the gas costs per user. The same strategy can have multiple implementations, but each must have varying parameters unless specifically hard-coded.

As a strategist, you would take a fee on revenue created through implementations of your strategy.

Tools

This sounds great and all, but with no constraints on making strategies how can we find genuinely good strategies to invest in? To dramatically decrease information risk, we are developing an extensive backtesting toolkit to run the strategies through. LPs can simulate different market conditions, various asset types, and TVL’s to see how the strategy will perform (a technical dive into the backtesting tool will come shortly). Of course, this can be used by strategists in their development cycle as well.

It is our goal to work alongside the community to create high yielding strategies. Transparency is important to us, as LPs should know how their money is being used. A ‘natural selection’ of strategies is expected as each iteration of implementation gets improved, benefiting the community.

So what now?

Get ready, Steer should be launching in the coming months… and there are tons of ways to get involved! From running mining nodes to developing strategies, we’d love your participation and feedback each step of the way. (and you’ll never know what you might get for participating!)

Join our Discord — Follow us on Twitter — Read our Docs

Articles coming soon:

Strategy Platform Overview

Automated Liquidity on Uniswap v3 Parts 1 & 2