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Future Use Cases
Discussion of potential use cases for Visor's technology

Trading Unrealized Yield

Users may trade unrealized yield on staked assets. For example, User A pays User B $50,000 in advance for the right to earn fees on B's staked assets for a certain period of time.
Both parties benefit because User A receives an income-generating asset, and User B receives immediate funds in advance.

Example

Charlie pays Alice $50,000 for the right to receive Alice's Uniswap Fees for one month

Scenario

  1. 1.
    Alice is currently supplying liquidity to an ABC-ETH Uniswap pool
  2. 2.
    She finds herself in need of immediate capital but does not want to pull her liquidity out of the pool or can't pull her liquidity out due to a timelock
  3. 3.
    Instead, Alice agrees to sell one month of fees to Charlie for a $50,000 upfront payment
  4. 4.
    In exchange, all fees earned from Alice's LP NFT for one month will be directed to Charlie

Benefits

  1. 1.
    Alice benefits from having immediate proceeds from the sale of fees without having to pull out her liquidity from the ABC-ETH Uniswap pool
  2. 2.
    Charlie profits from the transaction because he receives $56,865 of fees in exchange for his $50,000 upfront payment, a profit of $6,865

Liquidity Locking

Participating protocols have the option to timelock liquidity tokens staked within Visor Smart Vaults.
Protocols benefit by having a stable supply of liquidity for a certain period of time, and liquidity providers benefit from the diminished risk of "rug pulling" due to the timelock.

Example

Project_DEF may lock up their LP NFTs with Visor

Scenario

  1. 1.
    Project_DEF wishes to add stability to the liquidity of its token DEF by timelocking liquidity for some duration of time
  2. 2.
    Because the timelock function gives liquidity providers an extra sense of security, Bob the liquidity provider, decides to supply liquidity to the DEF-ETH Uniswap v3 pool
  3. 3.
    In exchange for providing this liquidity, Bob receives a DEF LP NFT that represent his ownership share in the DEF-ETH liquidity pool
  4. 4.
    Bob then stakes and timelocks his DEF LP NFT in his Visor Smart Vault to earn rewards

Benefits

  1. 1.
    Bob earns Uniswap trading fees for his contribution to the Uniswap DEF-ETH liquidity pool
  2. 2.
    Project_DEF and Bob both benefit from having a stable supply of liquidity and greater investor confidence due to the timelock function
Last modified 22d ago