Gamma Enterprise CLM
An overview of Gamma's enterprise suite for actively managed concentrated liquidity pools
Introduction
With the introduction of concentrated liquidity on Uniswap V3, Sushi Trident, and other platforms, a need has arisen not just for public liquidity management services, but enterprise liquidity management services for DAOs and other projects who wish to have a liquidity position on these platforms.
Gamma's technology stack can offer non-custodial, automated, concentrated liquidity management services to key participants within DeFi.
Gamma Enterprise CLM was created using many of the same principles and technology offered to Gamma Public CLM, like Vaults, Hypervisors, and Supervisors. Gamma Enterprise CLM is non-custodial and can adapt new strategies without migration. Gamma Enterprise CLM also includes a dedicated analytics user interface to provide critical data, statistics, and charts for the user.
Finally, Gamma Enterprise CLM has several special features designed specifically for enterprise liquidity management.
- 1.Liquidity Mining
- 2.Productive Treasury Management (Sustainable Grants)
- 3.Co-Managed Liquidity (Co-Supervisor)
Liquidity Mining
In order to incentivize liquidity providers to provide liquidity for a token pair, there needs to be either high returns from fees or additional rewards paid out in proportion to the liquidity being provided.
Liquidity mining on non-concentrated liquidity was relatively simple. A user deposited liquidity on an exchange and then deposited the LP tokens in a staking contract to receive rewards. However, with the implementation of all possible price ranges of LP’s in concentrated liquidity, a liquidity mining program is no longer an easy task for a project to implement.
A few attempts have been created so far allowing projects to launch liquidity mining on concentrated liquidity platforms such as; Official Uniswap v3 liquidity mining contract and Andre Cronje’s Uniswap v3 liquidity mining contract. Both are essentially calculating the liquidity that is provided by each individual LP that is ‘in range’ and rewarding them respectively.
The main drawback of these approaches is that the liquidity provider will not be rewarded if the price goes out of range and will need to pay for gas to unstake from the contract, manually change the range, and restake back into the contract.
Gamma Enterprise CLM users can incentivize liquidity on concentrated liquidity platforms more efficiently using our stack, as participants in the program can delegate the active strategy portion to Gamma, while earning rewards for the full liquidity they provide.
Each DeFi project using Gamma Enterprise CLM maintains control of the liquidity, the price ranges, and the reward distribution schedule.
Given the capital efficiency that concentrated liquidity affords, we expect that protocols can incentivize the same amount of liquidity, for 10% of the cost compared to traditional liquidity mining.
Productive Treasury / Sustainable grants
Funding any meaningful effort with a DeFi project’s native token puts the treasury, the grant recipient, and the community members at odds with one another. This naturally happens as funding significant operations requires fiat currency, and fiat currency requires (until now) the selling of the native token.
To prevent a market dump of the issued token, Gamma has created a ‘sustainable grant’ process. This process is a better way for DeFi projects to conduct their grant programs.
With Gamma Enterprise CLM, projects can make otherwise unproductive assets in their treasury, productive through achieving yield/return on the base treasury assets instead.
The sustainable grant implementation in summary is:
- 1.Take base treasury assets and lend a certain amount to receive ETH.
- 2.Then provide liquidity for your token pair, ETH / XYZ using Gamma Enterprise CLM.
- 3.Fees generated by the LP position (that would normally be reinvested into the position) go to the grant recipients.
Co-managed Liquidity / Supervisor
Actively managing liquidity can be a complex and time-consuming task for a DeFi project. Most would rather focus on building and growing their core product but at the same time desire visibility and control of their own liquidity.
Using a whitelisted private Hypervisor, protocols can manage their liquidity through a private Gamma Enterprise CLM portal. In combination with Gamma, we have created components for each action that can be taken when managing a liquidity position. There are various other implementations that teams can choose as well, such as a Telegram bot executing based on certain commands.
Enrollment
Please contact the Gamma team for a demonstration of Gamma Enterprise CLM. Here, you will find a list of Gamma Enterprise CLM partners who are successfully using the feature:
Last modified 1mo ago