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The Problem Liquidity providers on concentrated liquidity exchanges need to predict the optimal price range to allocate their capital to. This can be a daunting task even for experienced DeFi users. Opting for a position that is concentrated tightly around the current trading price will lead to far higher returns, though it is likely to quickly fall out of range and stop earning any fees. Conversely, selecting a wide position means it is less likely to fall out of range but earned fees will be much lower. In either case, you must monitor your position and pay gas costs to adjust it when it falls out of range. This involves making up to three transactions: one to remove the liquidity, another to swap assets and a third to re-add the liquidity in a new range. The Solution Unipilot optimizes and manages your liquidity for you, keeping it in an optimal range around the current trading price at all times to maximize returns from liquidity provider fees. This optimization also leads to greater capital efficiency for the market, enabling lower-slippage trading. In addition to this, Active vaults (identifiable by the Pilot logo) are rebased by the protocol, so you do not need to monitor your position and pay gas costs to adjust it. Unipilot currently manages liquidity on Uniswap V3 and Quickswap V3 on the following chains:
- Polygon zkEVM
- BNB Chain
- Dogechain Business Model The protocol takes a 10% fee on revenue earned on Unipilot. This revenue is used to pay staking rewards and to cover protocol expenses. Learn more about this in the Treasury section.