Visor’s Active Liquidity Management Beta Launch on Uniswap v3
Today marks the day Visor Finance initially begins active liquidity management on Uniswap v3. We are excited that the core pillars of Visor Finance are going live:
- Visor’s Technology Stack
- Gamma LP Strategies
- Fee distribution to VISR Stakers
Visor’s Technology Stack
On the day of the Uniswap v3 launch, just two weeks ago, we released our NFT Smart Vault v2 that allows DeFi participants to deposit assets into and permission them for use on various protocols including Uniswap v3. This is the Visor Core, published on Github.
Introducing Visor NFT vault. A Visor 2.x vaults allow for management and permissioning of ERC20, ERC721 assets for use…
With the vault completed and being actively minted, the next layer we have deployed is the associated position manager smart contract (Hypervisor). We have created this Hypervisor layer specifically to operate as a Uniswap v3 periphery contract that allows for placing assets into a position, creating limit orders, rebalancing of assets and re-investment of fees.
Among the currently on-going smart contract audits that we expect to receive and publish soon, this specific Hypervisor will begin an additional audit process — since it is central to all our Uniswap v3 integration efforts.
Gamma’s Active LP Strategy
The third component of the Visor technology stack is the Supervisor. The Supervisor is the admin controller of the Hypervisor which has the limited ability to manage certain functions of the contract. These limited functions are the variables that make up an active strategy.
In anticipation of the emergent active LP strategies that will distinguish managers, we have helped create an organization that funds the research and implementation of active LP strategies. For the past several weeks Gamma and it’s grant recipients have been hard at work developing the first strategy that will control the variables of our first Uniswap v3 active position.
This initial strategy was developed specifically for larger pools and is based on taking a moving average and deriving…
The initial strategy was developed specifically for larger pools where price dependent rebalancing is not frequently demanded. This initial strategy is based on taking a moving average and deriving Bollinger Bands to create a projected active liquidity range.
You will be able to see the live strategy on the dedicated strategy page on our website updated at 5pm PST on May 17th.
The first position that has been deployed by Visor and is being supervised by Gamma is a $443k ETH/USDT active LP position. This is currently live, and you can see the current strategy on the Visor Finance web app. The second pool is a $872k VISR/ETH active LP position, and the third pool is a $93k TRU/ETH active LP position. Together, these positions make up a total of $1.3M that is being managed.
These positions are currently live in a closed beta phase for the next several days to monitor the strategy while we test the various functions of our Hypervisors in a controlled environment.
When we open up deposits, there will be a cap, however this cap will be raised until it is lifted completely.
Visor‘s Fee Distribution to VISR Stakers
Now that we have discussed the deployed Visor technology stack and explained how the strategies work there is one more thing we are excited about: Visor Finance fee distribution to VISR stakers.
Visor is quickly becoming the ‘Decentralized Protocol for Active Liquidity Management’. When building a decentralized protocol, the most important and sustainable factor is participation incentivization. This is clearly demonstrated by the Visor fee distribution to the stakeholders of Visor.
Upon Visor’s rebalance of every position it holds, the fees that Uniswap pays to the position holder is re-invested. Directly before the the re-investment is made Visor allocates 10% of those fees to a separate address which buys VISR on Uniswap and then distributes all VISR to those that are staked to the revenue Hypervisor.
For this initial beta program, 100% of the fees from our first three positions will be distributed to VISR stakers. In less than 6 hours, fees allocated to VISR stakers has surpassed $2,500.
Uniswap is on track to to claim the 1st and 2nd place for most amount of fees of any protocol built on Ethereum. You can see these Uniswap v3 fee stats in realtime on Gamma’s Dune Analytics page.
Starting at 5pm PST, May 17th, we will update the UI, allowing all VISR holders to be able to stake their tokens in their vault in order to begin receiving Visor Finance fee distributions.