What is the idea of Unipilot?

The idea for Unipilot was first envisioned when Uniswap released its article that outlined the features of V3. The concept of allowing LPs to concentrate their liquidity into smaller price ranges to earn more fees set the wheels in motion for a service that could optimize and automate the process on behalf of the users. We saw a gap in the market for a service that takes out the complexity of active liquidity management while maximizing capital returns

How is Unipilot Universal?

Unipilot aims to be the one-stop solution for providing automatically optimized liquidity seamlessly across various AMMs. Uniswap V3 is the first AMM that offers the “Concentrated Liquidity” feature to users. Once other AMMs start to offer this feature, Unipilot will be able to upgrade its smart contract to also interface with these AMMs and allow users to access them.

Why does liquidity need to be optimized?

The inherent risk of providing liquidity on Uniswap V3 is that users are not able to earn any fees if the trading price moves out of range. Other risks include:
  1. 1.
    High Management costs
  2. 2.
    Topping up of additional funds
  3. 3.
    Impermanent Loss

What is a Vault?

It is an automatically optimized container that holds the liquidity for a token pair. Users can create or join an already existing Vault to provide liquidity and start earning fees. For every Vault that is deployed, the protocol will interact with Uniswap V3 and generate an NFT that represents it.

Who are Captains?

Captains are people who help the Pilot protocol by optimizing a Vault’s liquidity, they can call readjustment functions within Vaults in order to rebalance “out of range” liquidity. For this, they simply have to send a transaction either by using the interface provided in the Unipilot dapp or by running open-source bot code provided by the Pilot protocol. On each optimization, the Pilot protocol will reimburse the transaction cost and pay a premium on top of $PILOT tokens.

Are the readjustment functions accessible to everyone?

It is a permissionless process, anyone will be able to initiate the readjustment functions. Captains can either call the functions themselves through the dapp or by setting up their own bots that will interact with the smart contract. Initially, Unipilot will release open-source bots that will optimize the vaults, the community will be free to use them as a template to customize their own solutions.

How does the Index Fund support $PILOT?

The fees collected from the liquidity providers will go to an index fund which will back the $PILOT token. The value of the $PILOT token cannot fall lower than the underlying assets. As more users are joining the Pilot protocol the value of the $PILOT token will increase as the usage of the protocol is directly proportional to the earned fees.

What kind of tokens will be held in the Index Fund?

The Index Fund will comprise ERC20 tokens earned as fees from Vault liquidity pools. Any asset on the Ethereum blockchain can end up in the Index Fund as long as there is Vault for it on Unipilot and users are earning fees from it.

Where can I get $PILOT?

The $PILOT token can be purchased from Uniswap.
Last modified 9mo ago