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Ariah Klages-Mundt

@aklamun

26 Following
14 Followers
Ariah Klages-Mundt pfp
Ariah Klages-Mundt
@aklamun
This chart perfectly captures @gyroscope's growth over the last two months. In particular on @base. Gyroscope's Volatile Pairs, the new flagship product, are already generating $4M annualized swap fees and growing 130% MoM. And a lot more coming up.
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Ariah Klages-Mundt pfp
Ariah Klages-Mundt
@aklamun
While onchain FX has been tried before, there's never been a better opportunity than now: - Stablecoin rails are being adopted already by TradFi - Coinbase, Binance, Kraken etc are bootstrapping activity on their own chains with a vested interest and fintech connections that could port offchain volumes onchain E.g., new products could bundle USD <> USDC <> EURC <> EUR in a seamless offchain experience but using onchain liquidity under the hood to outcompete consumer alternatives like Wise. Gyroscope is in a good position to grow with this and help facilitate it when it happens: Gyroscope's CLP tech is proven, in production, and already demonstrating its profitability for liquidity providers.
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Ariah Klages-Mundt pfp
Ariah Klages-Mundt
@aklamun
Dynamic CLPs are doing amazing stats for the crypto majors (ETH and BTC pairs) and will keep scaling. But where is the next 1000x liquidity opportunity? Onchain currency markets (forex). Dynamic CLPs were designed for this. - FX volumes $2T/day >> $8B/day total on DEXs today - FX penetration onchain is tiny today, only 0.0005%. Bringing just 1% onchain would grow the pie of total DEX markets today by 2.5x -- plenty of room for Gyroscope to grow into. FX markets are the most liquid markets in the world but at the same time some of the least competitive for consumers to access. You can trade SPY/USD for 1 cent spread (< 1bp), but typical EUR/USD trades cost 50-300bp for consumers. If the volume routes onchain, onchain LPs can outcompete this. In addition to democratising access to liquidity provision, stablecoins can also offer more efficient settlement structures in at least some use cases.
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Gyroscope pfp
Gyroscope
@gyroscope
Dynamic E-CLPs have surpassed $50M in volume and $140K swap fees in just a month. On pools demonstrating the best performance for LPs, measured by markouts.
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Gyroscope pfp
Gyroscope
@gyroscope
The same pools on Base have already been outperforming for passive LPs 👇 Thanks to a wide range strategy that lowers concentration risk and dynamics that avoid costly rebalancing and maintain invariant protection (limits downside) in most settings. https://farcaster.xyz/aklamun/0xc4023cd9
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Ariah Klages-Mundt
@aklamun
The tech: - customizable liquidity profiles in a simple fungible pool - very simple, safeguarded, but effective way to shift the liquidity profile with the market (no tick math) How we use the tech: - pools calibrated with LP profitability in mind by a team who knows how to evaluate this (and knew what to build for this) - calibrated for safer wide range liquidity where passive pools have the best chance to compete, not competing with professional market makers in overly tight pools Learn more about the tech and calibration methodology at https://docs.gyro.finance/pools/dynamic-clps.html
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Ariah Klages-Mundt pfp
Ariah Klages-Mundt
@aklamun
There’s a lot you can do on top of this with hooks and dynamic swap fees etc, which will also come in due time. But Gyroscope shows just how good of a foundation you can get by designing the right pools and calibrating the right curve shapes.
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Ariah Klages-Mundt pfp
Ariah Klages-Mundt
@aklamun
Why are @gyroscope's Dynamic Pools so good? It's partly the tech and partly how we use the tech. You need both - tech designed to make efficient strategies easy to access - a team with deep expertise who knows how to calibrate the tech to achieve good strategies
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Gyroscope pfp
Gyroscope
@gyroscope
One pool type is reliably outperforming for ETH/USDC LPs: Dynamic E-CLPs And the tech makes LPing completely passive. Dive into why 👇
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Ariah Klages-Mundt pfp
Ariah Klages-Mundt
@aklamun
The markouts query is available here: https://dune.com/queries/5316572/8718950 Read more about Gyroscope's Dynamic Pools at https://docs.gyro.finance/pools/dynamic-clps.html
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Ariah Klages-Mundt pfp
Ariah Klages-Mundt
@aklamun
The only pools today that really 'guarantee' volatility harvesting are pools that preserve the 'constant function' property of static AMMs. And then only while prices wiggle back and forth. Pools in which LPs constantly shift positions (e.g., most concentrated liquidity) give up this property and lock in IL at each shift. In which case, LPs must shift liquidity in sophisticated ways if they want to achieve volatility harvesting or conceivably lose money on this component too. **Dynamic E-CLPs** Gyroscope's Dynamic Pools are designed to capture volatility harvesting by preserving the 'constant function' property in most settings (liquidity updates are designed to be rare). They're designed to move with the market but settle into regions in which they have a shot at volatility harvesting. Which means that Gyro LPs benefit from good positioning both on the empirical markouts performance above and volatility harvesting.
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Ariah Klages-Mundt pfp
Ariah Klages-Mundt
@aklamun
**Other components to LP profitability** LPs can also earn a return from 'volatility harvesting' if prices mean revert / wiggle around for a period of time. You can think of this in a simple way as effectively buying low and selling high over time (if the pool can achieve this) *while* prices wiggle back and forth. If a pool captures volatility harvesting, it can add profitability on top of markouts. - A pool with positive markouts and volatility harvesting will do even better. - If a pool has large negative markouts, it will be very hard to overcome this even with volatility harvesting.
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Ariah Klages-Mundt pfp
Ariah Klages-Mundt
@aklamun
How are @gyroscope's new Dynamic Pools doing? Here's ETH/USDC on Base measured by market making PnL (TVL-adjusted markouts). Noticeably the best performance for this pair at the pool level. And it serves passive LPs. Let's walk through what this means 👇 **Why markouts?** Markouts compare the execution prices LPs receive in a liquidity pool against the ‘true’ prices on CEXs. - Positive markouts means LPs are making a trading profit. - Negative markouts means LPs are leaking value to arbitrageurs.
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Gyroscope pfp
Gyroscope
@gyroscope
Dynamic E-CLPs now enter the realms of AI agents and onchain currency markets. New pools on Base for - VIRTUAL/WETH - EURC/USDC Real yield from highly efficient swap fees, now in a fully passive form.
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Gyroscope pfp
Gyroscope
@gyroscope
Explore the performance of the first wave of Dynamic E-CLPs 👇 https://farcaster.xyz/aklamun/0x35fba9f2
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Gyroscope pfp
Gyroscope
@gyroscope
2nd wave of Dynamic E-CLPs is live on Base with OP incentives. Designed for passive real yield on ETH/BTC/USD pairs. Learn more about Dynamic E-CLPs 👇
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Ariah Klages-Mundt pfp
Ariah Klages-Mundt
@aklamun
Check out the pool at https://app.gyro.finance/pools/base/?filter=dynamicOnly *note: the swap fee APR is undercounted in the UI right now (bug), being corrected Markouts query: https://dune.com/queries/5261922/8643891
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Ariah Klages-Mundt pfp
Ariah Klages-Mundt
@aklamun
Gyroscope's Dynamic E-CLP on Base doing stellar in its first day: - 200% Volume/TVL on a wide range, low concentration risk pool - 2.8x more swap fees earned than incentives - Market making PnL (markouts) positive
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Gyroscope pfp
Gyroscope
@gyroscope
Dynamic CLPs are passive pools designed for real yield: - wide range, high fee pools lower concentration risk - maximize the time the pool maintains invariant protection (limits downside) - avoid costly rebalancing They build on successful static CLPs 👇 https://farcaster.xyz/aklamun/0xc0a51aa0
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Gyroscope pfp
Gyroscope
@gyroscope
Dynamic E-CLPs are now live, starting on the Superchain. - Real yield from volatile pairs - Set-and-forget liquidity - Efficiency and safer wide range liquidity of the E-CLP 🧵👇
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