An organization dedicated to funding "Active LP" strategies and research
What is Gamma Strategies?
With the shift from Passive LP’s to Active LP’s, comes the opportunity for a wide range of strategies that must be researched, designed and implemented. Thanks to Uniswap v3, there exist many more variables beyond pool selection, entry and exit times. And the strategies that emerge will start to resemble algorithmic trading strategies. This is why we have decided to create and fund an Active LP strategy research organization, called Gamma Strategies.
The Gamma organization funds the research and implementation of ‘Active Liquidity Provider’ strategies. Through Gamma, Visor has the proper data science and financial modeling resources necessary to implement the most attractive Active LP strategies available for vault owners.
The published research can be found on the Gamma Medium Page and new research is published weekly. Below is a list of research reports:
Uniform strategy: liquidity is provided uniformly within the expected price range, as is the default in Uniswap v3.
Proportional strategy: liquidity within the expected price range is allocated in sub-bins within the range, with the intensity of a bin proportional to how likely the price is likely to be there.
Optimal strategy: using tools from decision theory, a model is developed to estimate the “optimal” range to provide liquidity over, having as a parameter the degree of “risk aversion” of the liquidity provider.
Impermanent Loss Insurance (Protection Markets) for Uniswap v3 LP’s: Impermanent loss (IL) is top of mind for liquidity providers (LP), as its effects induce volatility in the returns to LPs, particularly for assets whose prices tend to diverge. As interest in liquidity provision has risen, innovations to deal with this risk have begun to develop, and in this Gamma Strategies post, we review a recently shared contract by Andre Cronje from Yearn, Protection Markets.
The Costs of Uniswap v3 Active Management: This article assesses a small piece of the puzzle: how much does resetting strategies cost when implementing the expected price range strategy, and four simple insights were derived: (1) Periods with more price volatility imply more resets; (2) Network congestion has significant implications on the cost of the strategy; (3) Both congestion and ETH price combine to impact the costs of running the strategy in ways that require active management to control costs; (4) The Optimism rollup version of Uniswap v3 has fees that are significantly lower, allowing a new spectrum of strategies to be deployed.
Code & Development Repos
The published code and development repos can be found on the Gamma Github Page and new commits are made daily. Below is a list of the main Gamma Repos:
A curated list of Uniswap v3 resources: Awesome-Uniswap-v3 is a community-driven project, designed to be a resource people can use to familiarize themselves with Uniswap v3. All are welcome to contribute.