Unipilot create actively-managed optimized rETH/ETH vault

Hi everyone

Im messaging from Unipilot with a proposal to manage rETH/ETH liquidity to reduce slippage and improve capital efficiency.

Background: For users, providing liquidity on Uniswap v3 can be a daunting experience, as they need to predict the optimal price range for their capital and pay for numerous transactions to reactivate the position when it goes out of range. If you select a concentrated range, you can earn far higher returns, but you would need to monitor the position and pay to rebalance it into a new range regularly. For projects such as Rocket Pool, having poorly-positioned liquidity means reduced capital efficiency and increased slippage for traders.

Solution: Unipilot manages Uniswap v3 liquidity positions, keeping it in an optimal range so users no longer need to predict the best price range nor pay gas fees to keep the position active. The result is a better experience and potential for higher returns for LPs. For projects such as Rocket Pool, this optimization leads to greater capital efficiency of their token’s liquidity and enables lower-slippage trading. Additionally, due to this optimization, the same depth of liquidity can be achieved with less capital, freeing up resources for the project to use elsewhere.

Uniplot backtests numerous variables over 30-60 days, including price, time in and out of range, fees earned, IL, results vs. holding, in order to select the optimal range.

Unipilot proposes creating an Actively-managed rETH/ETH vault for Rocket Pool, with cross marketing to spread awareness. Users would be able to add to the vault to earn LP fees without worrying about having to select an optimal range or pay to rebalance the position. This would also increase capital efficiency of the pair and reduce slippage. We can also create an optimized RPL/ETH vault, if this was desired. RPL could be used to incentivize either pool.

More info

Unipilot has been live on Ethereum since November 2021, and launched on Polygon in October 2022. The project was audited by BlockApex and Hacken.

Unipilot has previously partnered with projects such as AMP and Airswap, and our token was recently listed on Coinbase Custody.

Unipilot takes a small cut of all LP fees earned on our dApp (10% on Polygon, 20% on Ethereum). This is only on LP fees earned and not on the principal amount. This is used to ensure the sustainability of the protocol and to cover existing and ongoing costs such as rebalancing positions, audits, research, backtesting data and developing specialist strategies for each pair.

Quick Links

Website / dApp

What makes your offering better than the alternatives? Gamma, Arrakis, xToken?

Hey, sorry for the delay - i posted this and then came down with flu

Hmm, its a hard one to answer, id imagine we have different methodology for determining the optimum range for positions, but without knowing their methology its hard to answer. I prefer Unipilot’s UI and it seems the pairs on Gamma and Arrakis are usually niche and very low fee earning.