🚀 We're excited to announce the release of our Beta-2! 🚀

This will be the final testing phase before deployment on @arbitrum⛓️

Features available in this release:
- Limit Swaps 💰
- Full Limit UI 💻
- Cover TWAP 📊

Signup to receive access: 🔑
https://poolshark.fi

Limit Swaps 💰:

Limit Swaps allow users to execute a swap normally if the price is at or better than the limit price they set.

If the set price is not available, it will mint an LP position which will be filled as their price range is crossed.

Whola! Better AMM trading UX 🦈

Full Limit UI 💻:

In addition to the user's normal Swap UI...

Limit Orders are listed on the bottom which they can:
A) Click on to view
or
B) Close at any time

This provides a more complete AMM trading experience 💱

Cover TWAP 📊:

Cover tracks the TWAP of liquid pools to provide a stop-loss feature native to an AMM liquidity pool.

With the release of Beta-2, we've introduced live TWAPs to show this feature in full-motion.

Swap a large amount of tokens and watch your Cover LPs fill! 🏊

Stay tuned via our Discord Server for all things Poolshark:
https://discord.gg/poolshark-896196350310514739

We will soon be announcing the details of the next upcoming Community Call where you can claim your OG status.

Stay vigilant 🫡🦈

Exciting Release: Beta-2 with Limit Swaps and Full Limit UI!

An announcement of an announcement.. 🎥

Community Call #4 will be hosted next Thursday, August 31st in our Discord Community Server.

Topics discussed:
- Limit Pools release 🚢
- UI Restyling ✨
- Beta-2 secret alpha 👁️
- Launch timeline 🚀

Follow the link here to RSVP ✉️ :
https://discord.com/events/896196350310514739/1144281734641352755

You can read the unrolled version of this thread here: https://typefully.com/PoolsharkLabs/4TjJkm6

Community Call #4 Announcement

Announcing Cover Pools: the Liquidity Pool for Stop-Losses on Fungible Tokens. Built in-house at @PoolsharkLabs.

Cover offers LPs proactive protection similar to a Stop-Loss.

@arbitrum Public Testnet launching soon ™️

Let's dive in 🤿

Cover, short for Covering Volatility, allows users to increase exposure to assets increasing in price 📈

Equally users can decrease exposure to assets decreasing in price 📉

Token markets continue to see growth year over year and will require stronger financial primitives to capture volatility.

Cover resembles one of the key primitives from the traditional markets: a Stop-Loss mechanism.

Cover was built on the principle that self-custody users need better methods to rebalance their portfolio as pricing of assets changes over time.

Crypto can be quite a volatile environment during large shifts in the market, and being able to capture this volatilitiy is critical.

https://twitter.com/KyleLDavies/status/1522813352665403392?s=20

With the current LP tooling available, it is quite difficult for LPs to be able to hedge against impermanent loss and manage market volatility.

The goal with Cover is to allow passive portfolio rebalancing without having to close other positions (i.e. lock in impermanent loss).

Cover starts by unlocking pool liquidity based on a TWAP source.

Unlocked liquidity is then auctioned off at each price tick. 🦈

Gas costs are fixed no matter how wide the range. ⛽

A Dutch Auction will continue to discount the asset according to a fixed rate, until the current auction is over.

This allows the pool to find the natural market price at each price tick interval.

Initially Cover will leverage raw Uni v3 oracles until the point where Poolshark has sufficient liquidity to provide accurate pricing.

Cover limits the volatility that can take place over some time period, placing a hard limit on the damage short-term manipulation can have.

Cover can support any decentralized exchange present and future through its modular design.

For example, all that would be required to support @CurveFinance via governance would be
A) enable a new TWAP source
B) add the relevant curve math

Cover will have 0 fees at launch for traders and LPs.

Cover fees can be turned on in the future case a DAO were to govern the protocol.

Cover's code is licensed under BSL similar to GMX v2. Additional use grants will be subject to review.

To learn how Cover works, visit docs.poolsharks.io or read the full whitepaper here 👇

https://twitter.com/poolsharks_labs/status/1613186619141664770

Cover is expected to be used in the future to build new products that require this type of new financial primitive.

We'll be doing a Twitter Spaces with @FactorDAO at 5pm UTC!
https://twitter.com/i/spaces/1yNGaNvygXqJj



If you'd like to start the conversation with us, we recommend joining our Discord to learn more:
https://discord.gg/poolshark-896196350310514739

You can read the unrolled version of this thread here: https://typefully.com/PoolsharkLabs/E6JRCk3

Introducing Cover Pools: A Liquidity Pool for Stop-Losses on Fungible Tokens

This past week, the stablecoin market was affected by the $USDC depeg that will influence stablecoins forever.

Today we will discuss how Poolshark can expand the tooling available for self-custody users in black swan events.

Let's capture some volatility 🤿📈

🧵 1/19

Psychology is an important aspect in any good trader's toolkit.

Looking back at the history of stablecoins and their Price Action post-depeg, there are usually key levels that once crossed are quite difficult to recover from.

🧵 2/19

For $USDC pre-SVB shutdown, that level was 0.98, as we can very clearly see from this chart that level was never crossed once outside of early 2019.

🧵 3/19

Our team's analysis would dictate that Cover Pools would have been a great solution to have during this period of time. 🥶 🦈

The reason is that users can DCA out of $USDC into another asset such as $USDT over some price range.

🧵 4/19

One particular strategy could have been to average out of $USDC into $USDT over the range of 0.98 ▶️ 0.97.

In Poolshark, each Cover Pool will handle a certain max volatility that is defined once at pool creation. Let's set that here to 2% max in a single hour.

🧵 5/19

What would happen is..

1) When the reference price reaches our Cover LP, the liquidity pool would unlock our $USDC liquidity to purchase $USDT from the open market 🔓

🧵 6/19

2) A dutch auction would play out at each price tick in the fashion shown below 🦈

🧵 7/19

3) If we offer a better price than the rest of the market, the Cover Pool price will be brought in line with other liquidity pools.

Assuming all order flow is equal, the Cover Pool users will be protected from market downside due to this Dutch Auction.

🧵 8/19

In the case that the market price is initially ahead of the Cover Pool price, the dutch auction will play out over a defined length and produce an effect similar to what is shown below 👀

🧵 9/19

Any unfilled amounts will be returned back to the users reflecting their pro-rata share of the liquidity provided.

In this way, Cover Pools hunt for liquidity in the market on behalf of LPs at each Tick and push for best price at all times 🤠 🦈

🧵 10/19

In addition to Cover Pools, Poolshark also offers Price Pools in to serve as a "Take Profit" range strategy.

Users could have provided $USDT to purchase $USDC from the market in the range of 0.90 - 0.95 in order to take a buy-and-hold  LP position.

🧵 11/19

https://twitter.com/poolsharks_labs/status/1623381485674954752

The great thing about Price LPs is that the gas cost is fixed no matter how wide the range.

Any $USDC that is purchased by the $USDT position is held by the LP. No more reversible trades as is the case with the Uniswap v3 style Range Orders.

You are locked in.🔒🦈

🧵 12/19

On the other side of the trader, you would set a Price LP near peg.

So...

We could set our $USDC sale back into $USDT in the range of 0.98 - 1.00.

As that range is crossed, we lock in profits and thus our loop of "Buy Low, Sell High" is complete!

🧵 13/19

Traders have had Take-Profits and Stop-Losses in their toolkit 🧰  for years, and Poolshark brings those tools back in a way that :point

🧵 14/19

A) Reduces Gas Costs ⛽

Price and Cover LPs are both closed-form solutions, meaning the gas cost does not differ no matter how wide your Range Order is.

🧵 15/19

B) Slashes MEV 🚅 🗡️

All MEV happens near the market price, as this value extracted is by definition static arbitrage.

By setting Price and Cover Orders away from the market price, users can avoid getting front-run by nasty bots and searchers.

🧵 16/19

C) Reduces Swap Fees

No longer is the user relegated to paying a swap fee to enter/exit their position each time. Assuming all order flow is equal, best price will win out.

Ultimately Cover and Price Pools offer different price discovery mechanisms for swappers 🤠 📈

🧵 17/19

We hope you enjoyed this deep dive into how users can leverage the trading tools available in Poolshark.

Smash that 'Follow' button if you're excited about our launch and be sure to join our Discord community for all the latest alpha:
https://discord.gg/poolshark

🧵 18/19

You can read the unrolled version of this thread here: https://typefully.com/poolsharks_labs/ZRkzkSw

Poolshark and Stablecoin Volatility

Traders have had Take-Profits and Stop-Losses in their toolkit 🧰  for years, and Poolshark brings those tools back in a way that 👇

🧵 14/19

The Poolshark team is thrilled to announce Price Pools will be coming mid Q2 2023 📈

When there is a lot of uncertainty on the token price, such as $BLUR in this case, Poolshark's Price Pools (soon ™️) will serve as the backbone for users employing Take-Profit range strategies.

https://twitter.com/0xkhan_/status/1625860127948681216

Buy-and-hold LPing will avoid users having to pay high gas fees ⛽ when there is a lot of trading activity. Other negative externalities come with being on the swap side such as front-running 🥪 and swap fees 💰.

The beauty about the x*y=k Range Order model is that no matter how wide the user's price range is, the gas cost is almost exactly the same.

To get the level of sophistication Price LP positions offer you over the range of 3000 to 5000 DAI per ETH, one would have to execute ~510 swaps.

That's about $3000 in gas fees on ETH mainnet 🤯

...vs. about $15 for opening a Price LP Position to gradually take profit for you at the smart contract level 📈


Currently we are undergoing audit for our Cover Pools, which will act as a Stop-Loss Range Order and hunt for liquidity in the market 🦈 .

Cover LP positions could also be used as a "bullish entry" in addition to a stop-loss.

Example: user is bullish on ETH when the price hits $2000 and starts averaging into ETH with DAI up to a price of $2200.

In a few hours...we will be having an AMA hosted by @AlfaDAO_ in their Discord and giving away OG roles...be sure to join here👇
https://discord.gg/alfadao

We're excited to see users play around in our upcoming @arbitrum Testnet Launch targeted for mid-March.

Stay vigilant and follow us here to get all the latest alpha! 🤠 🦈

You can read the unrolled version of this thread here: https://typefully.com/poolsharks_labs/fpqwRFK

Price Pools Launching Mid Q2 2023

Introducing Price Pools 📈 :

A new way for traders to provide liquidity to the market whilst applying buy-and-hold under the hood. Let's dive in 🤿

Today's LP positions run mean-reversion strategies. They were not designed for volatility capture!

Poolshark enables buy-and-hold at the smart contract level, meaning users are able to have a better "goalie net🥅" to capture profits as a passive LP.

This is accomplished by having split liquidity curves..

So...we would have one liquidity curve which represents

DAI → ETH

..and another liquidity curve which represents

ETH → DAI

By being on the LP side...users remove some negative externalities:

⛽ Gas costs for multiple swaps
💰 Swap fees paid to LPs
🔍 MEV searchers front-running your swaps

You are the LP! Thus, users can either match against you or arbitraguers might swoop in and fill your LP.

The implications here are positive for everyone, as no longer will it require advanced off-chain trading infrastructure to be a sosphisticated player.

Poolshark enables everyone to be an LP...even traders.

Some insights from the CT community on this:

https://twitter.com/BlockEnthusiast/status/1613732359450271744

Not long after the launch of Uniswap v3, @BlockEnthusiast put out an article detailing on how assets could be put to work elsewhere when when your LP position falls out of range.

https://blockenthusiast.substack.com/p/uniswap-v3-vault-rolling-hills-strategy


With the introduction to Price Pools, vault providers, users, etc. can capture volatility as yield!

We hope DeFi strategists will weave Price LPing into their basket of strategies to enable the next generation of yield farming (post-ponzi era..? 🤷‍♂️).

@safetyth1rd also made a thread on how there is not a great way to take one side of the market over some range.

x*y=k math allows for liquidity distribution over some range, and Poolshark Price LPing allows for buy-and-hold, effectively taking a single side of the market.

https://twitter.com/safetyth1rd/status/1613730234465124352

The Uniswap team is pretty clear that this was a problem when they shipped v3, and I think it would be unrealistic to expect them to have accounted for every type of LP trading strategy at the onset of Uniswap v3.

https://twitter.com/safetyth1rd/status/1613730410680455169?s=20&t=UB7GvbUcVEhGckdE2UfNXQ

They actually note this in their whitepaper on Page 2 in the bottom right corner
https://uniswap.org/whitepaper-v3.pdf

"When the position has been crossed, it needs to be withdrawn. If it is not, and the price crosses back across that range, the position will be traded back, effectively reversing the trade."


That's all on Price Pools for now.

If you have any posts of users thirstry for buy-and-hold LPing, please share them! 👇

Cheers and be sure to join our Discord for all the latest alpha:
https://discord.gg/poolshark-896196350310514739

Community Call #2 is available now!

https://open.spotify.com/show/1QwVmGfJWpTSXTAVz93dOE

What we covered 👇
- Development updates
- Whitepaper rundown
- MVP demo
- Community Stage Q&A

Development Updates:

The team has been hard at work readying up the smart contracts for audit. Testing coverage is at almost 100%.

Our audit is scheduled for mid-February. 3 man weeks will go into that which should place us at early March for launch.

The Cover UI has seen some slight changes to the design to make the UX easier for users trying to cover their Impermanent Loss.

Check it out 👁️ :

#1
Select a Pool to Cover
- for IL coverage
OR
Create Your Own Cover
- stop-loss (protect downside)
- bullish entry (protect upside)

#2
If you clicked 'Select Pool to Cover'..

you will choose from:
- a Poolshark range pool
- a Uniswap v3 pool
- a Sushiswap pool (coming soon)
- a Curve pool (coming soon)

#3
Then boom!~

It will autofill your range and you will simply press 'Create Cover'.

That's it! You're set if the asset you covered goes up (e.g. ETH).

Whitepaper rundown:

@alphaK3Y goes over each section of the whitepaper and gives a detailed description of his motivations for each section as he was writing it.

Price contract implementation details will be coming with the second version release of the whitepaper (v1.1.0).

MVP Demo:

@0xnexusflip gives a detailed showing of the current MVP state prior to the UI tweaks shown above.

Community Q&A:

Some of our closest community members jumped on stage and engaged in asking questions about partnerships, future product updates, and more!

Be sure to join our Discord for future calls:
https://discord.gg/FZRnydkyx2


...And that's it!

See you in the next thread fren. Byeeeeee for now!

Community Call #2

Today we are grateful to present a detailed overview of Poolshark, the first-of-its-kind directional AMM where LPs can adopt buy-and-hold strategies.

@arbitrum Mainnet launch is scheduled for early March.

@fuellabs_ Testnet launch set for early April.

https://docs.poolsharks.io/whitepaper/poolshark.pdf

The release of this whitepaper marks the end of a long journey and the start of a new one: one to improve outcomes for liquidity providers and end passive LPs being forced into mean-reversion strategies (i.e. Uniswap, Curve, etc.).

LPs can now balance out their holdings.

Flavor #1 of directional liquidity:

Cover Pools:

Standard Range LP positions always take the losing side of the market.

If the market wants ETH, they take DAI.

If the market wants DAI, they take ETH.

Cover LP Positions do the opposite, where as the price of ETH increases, we're going to:

- unlock liquidity
- purchase ETH
   ...or another desired asset from the market

This can be equated to a Stop-Loss Range Order.

Rebalancing LP positions becomes a losing game, where losses for price divergence get locked in over and over.

This is a part of the game in order to earn fees, however, Cover LP Positions can be utilized to neutralize losses with profits from Buy-and-Hold.

This Buy-and-Hold profit is intended to offset any Impermanent Loss experienced from the POV of the LP.

In the whitepaper, it is detailed how an on-chain TWAP oracle (e.g. Uniswap v3) is leveraged to gradually unlock liquidity.

As each bit of liquidity gets unlocked, a Gradual Dutch Auction (designed by @paradigm) takes place which will fit the natural market price starting from the current TWAP.

Gradual Dutch Auctions can be read about here:
https://www.paradigm.xyz/2022/04/gda

Flavor #2 of directional liquidity:

Price Pools:

Price liquidity trades the same similar to current AMMs, except without one key caveat:

The trades are irreversible.

This allows users to lock in profits and find entries while providing liquidity to the market.

Use Case:

Quick Entry 🦈 📉
Alice wants to buy 1 ETH from 1200 down to 1000 DAI per ETH.

Quick Exit🦈📈
Alice then sells 1 ETH from 1300 up to 1400 DAI per ETH.

Price Pools open up a range of opportunities for pegged assets such as stablecoins and LSDs (liquid staking derivatives) where there is price deviation around fair market value.

We're excited to see how protocols leverage this to increase yield and sustain liquidity operations.

With that...

We're excited to have you all here along for the ride and enable traders to provide a more liquid market for DeFi.

Let's build a more liquid market for DeFi together and unlock more opportunities on-chain.🦈

You can check out the full documentation here for more information on the topics covered in this thread:

docs.poolsharks.io

Or join our Discord to plug us with any questions not answered anywhere else:

https://discord.gg/FZRnydkyx2

You can read the unrolled version of this thread here: https://typefully.com/poolsharks_labs/v7n3AMa

Poolshark Whitepaper Release

From Day 1 of launch on both @arbitrum and @fuellabs_,

Directional Liquidity will enable Liquidity Providers to capture profit and market strength with less maintenance.

So what is Directional Liquidity and how can it be leveraged?

🧵 1/n

Directional Liquidity at the protocol layer allows users to trade in a single direction as a one-time position.

It allows for 'Buy and Hold' strategies as an LP, which means your desired token amount is "locked in" the moment someone trades against your position.

🧵 2/n

Two key innovations will launch for v1:

- Hedge Pools 📉
- Price Pools 📈

🧵 3/n

Hedge Pools work by slowly transitioning out of an asset in the same spirit as Range Orders, except they trade in the opposite direction.

🧵 4/n

Use cases:

- Cover Impermanent Loss as the price changes
- DCA into a large position without high price impact
- Unwind a leveraged position with low price impact
- Rebalance LP position at any time with minimal IL

🧵 5/n

Why is this so cool?

Because it allows you to effectively have a stop-loss position as a Liquidity Provider fully on-chain, something current AMMs are not capable of doing.

It also completely handles the slow unlocking of liquidity as the price changes.

🧵 6/n

Time of claim has no impact, as the output is locked in the position.

This mechanism allows you to do something users have never been able to do before with ease:

Spread a buy or sell over a range, which is akin to a Dollar Cost Average or DCA strategy.

🧵 7/n

Basically what @0x_emperor said except:

A) No gas fees because your LP position sits on-chain for you
B) No MEV or front-running for the LP since other users are trading against your liquidity position

🧵 8/n
https://twitter.com/0x_emperor/status/1600765558517297155

The main use case for Hedge Pools is of course to Cover IL for current LP positions on Uniswap v2/v3, Curve, Sushiswap, and others!

Here is a sneak peek of our Cover UI which will initially support Uniswap v3:

🧵 9/n

In order to additionally support users of Curve.fi and Sushiswap, we will be leveraging @redstone_defi to provide real-time data from these pools.

🧵 10/n

The Uniswap v3 compatible Hedge Pools will use a long-form TWAP sample directly from the Uniswap v3 contracts to decide what liquidity should be unlocked.

This prevents the pool from triggering liquidity unlocks too early.

🧵 11/n

As our community evolves we will be able to leverage more and more data to improve the parameters set in these pools to achieve the optimal outcome for the largest set of users.

🧵 12/n

Brief history lesson:

With the release of @Uniswap v3, users could leverage the concept of Range Orders to employ LP positions as Limit Orders.

The key missing piece was that it was not a 'one-time position'. You needed to go race to close that position.

🧵 13/n

Likewise, you could not trade against the market without manually going and opening up new Range Orders each time the price moved.

Though @Uniswap v3 was a key innovation in the landscape of Constant Product AMMs, these limitations were still in place.

🧵 14/n

It is unlikely that our future destiny in web3 is to stay parked on L1 Ethereum.

Though Directional Liquidity is built for Ethereum Mainnet...

We will navigate to other L2s and Virtual Machines that are Customized Execution Environments.

🧵 15/n

This is where we believe @fuellabs_ will come into the picture and has the potential to offer more scalability and optimization than any other Virtual Machine on the market...purely for execution.

Key features:
- Zero token approvals ⏩
- Sub second block times 🤞

🧵 16/n

In the next thread we will cover Price Pools, which enable Price Priority and bunch of other cool things.

For now, you can follow us on Twitter or join our Discord below 👇

🧵 17/n

If you'd like to get more involved in the Poolshark community, please join our Community Call #1 tomorrow within our Discord:

https://discord.gg/tmZrDXjmsd

Come plug us with any questions! 🫡🦈

🧵 18/n

You can read the unrolled version of this thread here: https://typefully.com/poolsharks_labs/INfy6aL

🧵 18/n