AMM LP Tools
By utilizing Typus AMM LP Vaults, AMM Liquidity Providers (LPs) will be able to earn fees or premiums more easily and efficiently, with the potential of getting better risk-reward ratios.
The "concentrated liquidity" mechanism of Uniswap V3 has become the mainstream method for providing liquidity in AMM pools. After LPs deposit the two corresponding assets into the pool, they must set a price range to provide asset trading services.
Setting LP intervals can be a challenging task, especially for retail investors. The center position and width of the LP interval need to be dynamically adjusted according to market conditions to ensure optimal liquidity provision efficiency. Failure to do so may lead to LPs being unable to efficiently earn transaction fees and a bad user experience on swap protocols.
Typus is developing a one-click tool that will eliminate the need for LPs to manually adjust their LP ranges. Instead, Typus will automatically set the LP range for each underlying asset based on the implied volatility traded in the options market and fitted with other dynamic adjustment conditions. By using market information to determine the LP range, Typus believes it will be more profitable and reasonable in a systematic and programmatic way.
Liquidity providers face impermanent loss risk in any AMM model, including both the global liquidity mechanism of Uniswap v2 and the concentrated liquidity mechanism of Uniswap v3.
Typus Sharpe Optimizer is an instrument designed to hedge against impermanent loss risk with just one click. When providing liquidity to an AMM pool, users can simply click a button to allow Typus to handle the difficult and tedious hedging process for them.
The specific details of the operation will be announced at a later time.