The Uniswap v3 Supervisor, Visor Vault Upgrade and introduction of Protocol Revenue to VISR Stakers
The Components of Visor Finance
What is a Visor Vault?
A ‘Visor’ or a Visor Vault is an NFT personal vault where you can deposit your assets in order to interact safely with smart contracts and external DeFi protocols. We believe that this invention will be a revolutionary component of the new DeFi ecosystem which allows for greater control over assets.
Not only does your Visor Vault provide safer interactions with DeFi protocols, your Vault also allows the permissioning of assets for faster and cheaper interactions. Imagine if your interactions with leading DeFi protocols just took a signature, no gas. Unlike traditional vaults, in Visor Vaults many actions can be taken just by signing. Within the Visor Vault, users can gaslessly subscribe and unsubscribe to available Hypervisors.
What is a Hypervisor?
A hypervisor is a Visor compatible smart contract that interacts with Visor Vaults and it’s assets. For example, we have deployed four Hypervisors that are interacting with Visor Vaults right now in our reward program phase 1. Each of these Hypervisors read the amount of assets in each Visor Vault and pay out to each Vault accordingly.
In this specific Hypervisor, assets are stored but never removed from the participant’s Visor Vault. This Hypervisor is perfect for a Uniswap v2 liquidity mining program, such as Ampleforth’s upcoming one. Additionally, since the assets are never moved from the vault multiple Hypervisors can reward a participant based on the required assets deposited in the vault.
What is a Supervisor?
A Supervisor, simply defined, is a Hypervisor contract with a controller. These controllers allow for updating/changing certain defined variables in the Hypervisor contract for the purpose of managing assets and implementing strategies. An example of this would be a Supervisor that chooses to periodically re-invest and change price ranges of a liquidity position on Uniswap v3. As you may be able to tell, many new and exciting kinds of strategies can be implemented with this structure.
The diagram above demonstrates the Uniswap Supervisor that we will be deploying in anticipation of the Uniswap v3 launch (details below). The diagram also demonstrates the fees that Visor collects and distributes to VISR stakers (more details below).
Smart Vault Upgrade
We are finalizing the new NFT interface for our Smart Vault upgrade. There are a number of new features that we are developing which will allow for all future innovations of Visor Finance to be made through deploying new Hypervisors. This is a significant upgrade because anyone will be able to develop a Hypervisor or Supervisor contract (similar to a Yearn strategy) that is compatible with Visor Vaults.
These Vault features include new timelocks, approvals, permissions, transfer functions and a gasless subscription function. We are introducing these upgrades so that no matter what DeFi strategy a developer wants to implement through a Hypervisor, the Visor Vault will be compatible.
Another exciting feature of the upgraded Visor Vault will be the addition of an ERC-777 hook to allow automated transactions to take place. This means that a user can send tokens directly to their Vault and, which in turn, triggers actions from the set of Hypervisors the user has subscribed to.
The Visor Vault upgrade process will be a seamless migration that will take place through our UI on your Visor Dashboard. We will announce more details about this when the upgrade is ready.
The Uniswap Supervisor
Our Uniswap Supervisor takes advantage of the new Uniswap v3 active liquidity provisions in order to manage LP positions on a user’s behalf. In our first Uniswap Supervisor, instead of having users deposit their LP NFT’s into their Visor Vaults, they deposit either side of a desired pair into their vault and grant permission to the Supervisor to use their assets in the Visor managed Uniswap LP NFT.
Upon launch of our Uniswap Supervisors, we will create positions of the top 15 Uniswap LP pairs (based on highest 7 day volumes). Immediately users will be able to take advantage of several actively managed Uniswap v3 positions.
Visor Vault owners simply need to deposit base assets of any of the available positions in their vaults allowing Visor to enter their assets into the relevant Uniswap v3 LP NFT position. Periodically, Visor re-invests the fees with no need for gas to be paid by participants.
In addition to managing positions of the top 15 pairs on Uniswap v3, we will also offer active management of Stablecoin positions with a Curve like strategy.
Liquidity Mining Phase 2
Our Liquidity Mining Phase 2 + Uniswap Supervisor will allow all Visor Vaults to participate with the existing assets currently deposited in their vaults. Because of the engineering of Unswap v3, participants will be able to enter our liquidity mining program with a single asset, rather than needing both sides of the pair. We will have five assets that participants can use to enter the Visor Liquidity Phase 2: ETH, USDC, DAI, USDT and VISR.
Once these assets are permissioned to the Supervisor, they will be entered as needed into a set price range of liquidity on Uniswap v3. More details about amounts and timeline will be provided when we get closer to deployment.
What is the use of the liquidity mining program to Visor?
Active liquidity provisioning is a very deliberate feature of Uniswap v3. This necessarily allows for active pricing to occur. The ability to choose and continually update price ranges of the Liquidity Position is further extended with our ‘Capital Momentum Gradient (CMG)’ feature.
The CMG allows our phase 2 liquidity mining program, using a Supervisor, to set a buy function of VISR coupled with the incremental upward translation of liquidity range during simultaneous price discovery.
For example, let’s assume at the start of phase 2 we have a ETH-VISR pair with $10M of liquidity with a price of $1. The liquidity range is set between $0.95 and $1.05. Every hour fees on the ETH side of the pair are used to purchase VISR.
Assuming consistent volume, fees on the ETH side amount to $1,000 every hour. This capital momentum immediately precedes the upward translation of liquidity range (ticks). Additionally, the fees on the VISR side of the pair will be added to the rewards and paid out to participants.
We anticipate our model with active pricing (CMG) will be used by many new liquidity mining programs that want to take advantage of Uniswap v3. We are happy to facilitate this for other projects.
VISR Tokenomics
We are excited to announce that Visor Finance is introducing protocol revenue distribution to VISR stakers. This is a significant upgrade from the current governance token model. It is very important to the future of Visor Finance that stakeholders are rewarded appropriately for their participation.
To dive into this mechanism further, let’s look at a concrete example. As mentioned earlier, upon the launch of our Uniswap Supervisors, we will create positions of the top 15 Uniswap LP pairs (based on highest 7 day volumes). If we assume that Visor manages just 3.5% of the top 15 pairs liquidity, that represents about $100M of liquidity. The fees associated with $100M equate to $42,307 per day or about $300,000 per week. This equates to $30,000 in purchased and distributed VISR (Visor protocol revenue) to VISR stakers each week.
Our initial service to attract liquidity into the Visor Vaults is re-investment of Uni v3 fees. Fees will be reinvested every X number of hours, which is also when VISR gets simultaneously purchased with 10% of the fees and corresponding of upward translation of liquidity range (Capital Gradient Momentum).
That is all for now. We will be providing updates on Discord, Telegram and Twitter as we focus on this exciting launch over the next several weeks. Thank you for reading and being a part of the Visor Community. See you on 🦄 v3!
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