Gamma Strategies Officially Launches On Arbitrum
Key Points:
- The Ethereum-based Gamma Strategies protocol for active liquidity management on Uniswap V3 is now operational on Arbitrum.
- The protocol will be releasing new tactics and explanations on its web application in the interim, along with a variety of structured LP products for both risk-tolerant and risk-averse LPs.
- Gamma Strategies will launch more pairs and partner with more protocols on Arbitrum.
The Ethereum-based Gamma Strategies protocol for active liquidity management on Uniswap V3 is now operational on Arbitrum.
Gamma Strategies will also be releasing various structured LP solutions for risk-tolerant and risk-averse LPs in the interim, along with new strategies and descriptions on its web app.
The protocol caters to persons with various risk appetites and opinions on volatility by providing both wide and narrow dynamic range strategies. Narrower ranges are consequently more short volatility because the act of liquidity provision itself is a position that is short volatility.
Additionally, it provides pegged price techniques, which tighten the liquidity bands around the net asset value of liquid-staked derivatives, maximizing fee income with little temporary loss.
In the long run, bigger ranges will probably outperform narrower ranges, but in the short run, when volatility is low, narrow holdings can outperform wider positions by a significant margin. The LP’s strategy is determined by its risk appetite and opinion on volatility. Even a hybrid of the two stances is possible.
Additionally, liquidity is made available around an asset’s net value. Because the protocol did not provide liquidity when the market price materially deviated from the net asset value, this technique avoided temporary loss. It can supply liquidity where the price is most likely to trade since we anticipate that the market price will eventually converge to the net asset value.
Gamma Strategies also released high-volume pairs across multiple fee tiers and strategies. It anticipates launching additional pairs and collaborating with more protocols on Arbitrum in the upcoming weeks.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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