With Uniswap V2, liquidity is spread out across an infinite range. While this proved simple for users to manage, it did not allow for the most efficient use of capital.
With the introduction of Uniswap V3, liquidity can be provided in concentrated ranges, allowing users to earn much higher fees on their liquidity.
The result? Up to 4000x more capital efficiency.
But if Uniswap V3 is so good, why is there still more liquidity on V2? The answer is user experience. Selecting an optimum liquidity range can be extremely confusing for many users. On top of that, users must monitor their liquidity in case it falls out of range. If it does, they stop earning liquidity fees and have to make a transaction (paying gas fees) to move it back into a suitable range.
Unipilot presents a solution to this problem. Unipilot actively manages Uniswap V3 liquidity, using smart contracts to keep it in an optimum range at all times so that liquidity fees are maximized without additional gas fees.
While there are other liquidity optimizers already on the market, one particular aspect that sets Unipilot apart from the others is that it is the only 'Universal' optimizer. This means liquidity providers can provide liquidity for any Uniswap pair through the Unipilot protocol.
What about tokenomics?
Unipilot takes a small percentage of the fees earned by LPs and sends it to the Unipilot Index Fund. As more people use Unipilot, the Index Fund grows larger and larger as it is filled with a broad range of tokens (eg. ETH, USDT, LINK).
As the value of the Index Fund grows, users can choose to burn PILOT tokens to access the equivalent share of tokens in the fund.
What does this mean for the price of PILOT?
Simply put, the market cap of Pilot won't fall below the value of the underlying assets in the Index Fund.
How big can the Index Fund get?
If Unipilot managed just 5% of Uniswap liquidity, the index fund would grow by $5 million every month!
And that's not the only opportunity, as Unipilot will support other AMMs such as Sushiswap in the future.
Unipilot launches on 18th November. Look out for the lucrative farming opportunities available to early adopters.
What exactly is Unipilot?
The Pilot Protocol.
The Pilot index fund.
How big can Unipilot get?