LPDFi Thread 3: Perpetural execution on top of v2/v3 AMM LP

4 protocols utilise provisioned liquidity to power perpetual dex
@OpenLeverage
@goodentrylabs
@marginlycom
@LimitlessFi_

I will share the potential of this approach and potential #airdrop

(1/n)

there are two components on these AMM LP as Perp

lending side - liquidity for traders to borrow for their position

margin trading side - traders execute their positions on AMM LP, literally swap borrowed liquidity

(2/n)

AMM LP as perp plays important role on LPDFi as it creates more activity on the liquidity and make liquidity more efficient

should take a look at thread 1 if want to learn more

https://twitter.com/0xicedrip/status/1700882444273254502

(3/n)

openleverage @OpenLeverage is the OG among all 4 perp dex

it launched on multiple chain including ETH, ARB, BNB, KuCoin community and recently extended to Scroll as Alpha

(4/n)


openleverage offers up to 10x lev

lending - simple a shared lending pool like aave to power all perp pairs

margin trade - borrow from lending side to execute positions on v2/v3 AMM LP inclduing UniSwap, SushiSwap, PancakeSwap, BabySwap, BiSwap, MojitoSwap, and KuSwap

(5/n)

good entry @goodentrylabs offers up to 10x lev

ezVaults - isolated lending per pairs to supply liquitiy on v3 LP for swap fee

protected perp - traders borrow from ezVaults and execute positions on the v3 LP

deployed to arbitrum and token not launch

potential airdrop ?

(6/n)


marginly @marginlycom  offer up to 20x lev

ending side - isolated lending pool per perp pairs

margin trade - borrow asset to execute on AMM LP via UniSwap, SushiSwap, Balancer

deployed to @zksync testnet and no token yet

potential airdrop ?

https://twitter.com/marginlycom/status/1704482091197780173

(7/n)

limitlessfi @LimitlessFi_

lending - lenders can provide liquidity as either single sided or full range LP

trading - traders borrow asset and execute positions on the v3 LP

currenty can sign up for testnet

https://twitter.com/LimitlessFi_/status/1696304137867309323

(8/n)

imo openleverage suffers from trading vol as slippage hurts traders

@GMX_IO @GainsNetwork_io are direct competitors and i do not see how AMM LP perp can grow better

but this perp engine is suitable for markets that do not have reliable oracle

not bullish yet keep an eye

(9/n)

Tagging some of the best who are interested:

@0xSalazar
@0xsurferboy
@CryptoGideon_
@crypto_linn
@eli5_defi
@Defi0xJeff
@0xTindorr
@poopmandefi
@thedefiedge
@defitrader_
@TheDeFinvestor
@poopmandefi
@TheDefiDog
@2lambro

LPDFi Thread 3: Perpetual Execution on AMM LP

LPDFi Thread 2: Perpetual DEX Liquidity Provision

Let's talk about these 4 protocols - committed to provision liquidity on #GMXv2 @Vaultkaofficial @GMDprotocol @UmamiDao @steadefi

as well as GLP warriors OG @PlutusDAO_io @rage_trade @JonesDAO_io

(1/n)

Liquidity Provisioning Derivative Finance narrative refers to protocol provide liquidity for certain purposes

here is thread 1 on LPDFi on AMM liquidity provision

@logarithm_fi <> @traderjoe_xyz, @AlpacaFinance, RoboVault

(2/n)

https://twitter.com/0xicedrip/status/1700882444273254502

#GMX is spotlight of perp dex sector and GMX v1 GLP war was viral as real-yield was almost 30-40% APR

current total combined tvl at $70MM

(3/n)

https://dune.com/defimochi/definitive-glp-vaults-tracker

vaultka brings LPDFi perp dex liquidity provision to next level among all other competitors

@Vaultkaofficial already provisions liquidity on @GainsNetwork_io @vela_exchange @GMX_IO

also noted that the 1st GMX v2 GM vault

(4/n)

GLP vault from @GMDprotocol is a single staking vault per asset

currently at $14M

GMD announced about GMX V2 vault in development

(5/n)

https://twitter.com/GMDprotocol/status/1705945739300417789

GLP vault from @UmamiDao is also a single staking vault per asset

current at $4M

GMX V2 is also in dev as just had a good session with @thecalcguy

(6/n)

https://twitter.com/UmamiDao/status/1706266794393035090

GLP vault from @steadefi is paused due to an exploit but a relaunch plan with GMX v2 and Level soon

(7/n)

https://blog.steadefi.com/steadefi-relaunch-and-compensation-plan

https://twitter.com/steadefi/status/1686352380261208064

icedrip asked  @PlutusDAO_io @rage_trade @JonesDAO_io for any plans on GMX v2 but they do not have any at the moment

all 3 vaults account for $22MM TVL of GLP

no GM war for them i assume

(8/n)

Tagging CT space
@crypto_linn
@Louround_
@0xTindorr
@0xSalazar
@thelearningpill
@arndxt_xo
@TheDeFISaint
@2lambro
@eli5_defi
@CryptoShiro_
@stacy_muur
@defi_mochi
@the_smart_ape
@Hercules_Defi
@0xFinish
@francescoweb3
@FarmerTuHao
@rektdiomedes

LPDFi Thread 2: Perpetual DEX Liquidity Provision and GLP Warriors

Base Ecosystem Fund is active to invest into projects, they strategically picked various areas to grow BASE @BuildOnBase

media - @paragraph_xyz
perp dex - @avantisfinance @bsx_labs
RWA aggregator - @truflation
wallet -  @OnboardWallet
insurance - @OpenCoverDeFi

(1/n)

Paragraph does not just a platform to publish post like @SubstackInc, @Medium, @viamirror it allows you to deliver newsletter via wallet, token-gating content using NFT or ERC20 token on multichains


https://twitter.com/Crypto_Dealflow/status/1700127942909591699
(2/n)

Avantis is perpetuals DEX provides cryptocurrency and forex trades with USDC as counterparties' liquidity and trader's collateral. It highlights LP's risk management as they can choose tranches of different proportion fee vs traders' PnL.

https://twitter.com/Crypto_Dealflow/status/1700127474506461484

(3/n)


BSX emphasis it as an institutional-grade derivatves DEX. BSX is an orderbook-based perpetural like @dYdX and provides REST with WebSocket API support for professional traders.


https://twitter.com/Crypto_Dealflow/status/1700127369535557893

(4/n)

Truflation's secure blockchain infrastructure provides unbiased, verifiable data for the growth and sustainability of business decisions. It powers a number of RWA projects includes @NuonFinance @TheMinerNetwork

https://twitter.com/Crypto_Dealflow/status/1700126762359836986

(5/n)

Opencover is a defi insurance platform like @InsurAce_io @NexusMutual @Opium_Network

it offers against smart contract hacks, oracle failures and more from vetted onchain underwriters.

https://twitter.com/Crypto_Dealflow/status/1700127223699620157

(6/n)

Onboard is the simplest self-custody wallet to use for everyone. If you're looking for a wallet where you can completely own your assets and take control of your finances without relying on any middlemen.

https://twitter.com/Crypto_Dealflow/status/1699830127541076172

(7/n)

That's all the project @BuildOnBase invested (announcement in public). If you enjoy, please follow, like and retweet.

huge shout out to @Crypto_Dealflow made it very easy to find all announced investement


Base Ecosystem Fund recent investment to grow @BuildOnBase

LPDFi narrative has been rasied on CT space

this is a series of threads covering Liquidity Provisioning Derivative Finance narraive, deep dive on fundamentals with new (and existing) protocols

thread 1: @logarithm_fi vs @traderjoe_xyz, @alpacafinace, RoboVault

(1/n)

Shout out to @Defi0xJeff on LPDFi thread for gud thread and inspiration

https://twitter.com/Defi0xJeff/status/1699890346254365145

(2/n)

the foundamental of LPDFi narrative for sure is the liquidity itself. without deep and solid liquidity, use cases cannot built on top of it, and also limit the scalability of this narrative

looking at all derivatives, they are built on top of either Uni v2 or v3 liquidity

(3/n)

assume all are very familiar with Uni v2: xy=k, impermenat loss vs fee as profitability is the problem

Uni v3: same problem yet the quantity is multiplied but to improve capital efficiency

(4/n)

from @Defi0xJeff said 50% of Uni v3 but I rather say that's too opimistics

@traderjoe_xyz created autopool which is an aut-rebalance vault on its liquidity book (Uni V3-like liquidity) and @0xSindermann's stat indicated the avg PnL is negative

https://twitter.com/0xSindermann/status/1689357995879313411

(5/n)

basically the foundatmental is at risk as no deep liquidity to power LPDFi

which questions the scalability of this narrative

(6/n)

Logarithm Finance @logarithm_fi is a delta natural vault built with v3 liquidity and hedge with GMX v2 perp. at a leverage of 4x can achieve 10+% APR

https://twitter.com/logarithm_fi/status/1668502299960803333

(7/n)


automated vault from @AlpacaFinance is a pseudo-delta-neutral leveraged yield farming strategy. it was so attractive at first but users left due to low fee and high IL, resulting sunsetting lots of vaults.

https://twitter.com/AlpacaFinance/status/1668825114757201922

(8/n)

RoboVault provide detla neutral strategy on v2 liquidity hedged with AAVE liqudity but current also paused all vaults due to not attractive yields

https://medium.com/@RoboVault/delta-neutral-strategy-deep-dive-ae91d309b504

(9/n)

in conclusion, a few protocols in the pasted provide leveraged LP strategies but nearly all of them are not able to substain the vault with disappointed vault performance

(10/n)

imo @logarithm_fi will also struggle on maintaining good vault performance, especially building on v3 liquidity

the assumption on liquidity strategies is low volatility and performance is always bad with volatity

(11/n)

this is the end of LPDFi series. If you like this thread, please

follow, like, retweet, comment with any LPDFi you want me to cover next  🫡

https://typefully.com/0xicedrip/NbetNn7

Tagging CT space
@crypto_linn
@Louround_
@0xTindorr
@0xSalazar
@thelearningpill
@arndxt_xo
@TheDeFISaint
@2lambro
@eli5_defi
@CryptoShiro_
@stacy_muur
@defi_mochi
@the_smart_ape
@Hercules_Defi
@0xFinish
@francescoweb3
@FarmerTuHao
@rektdiomedes
