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xU3LP
Uniswap v3 Liquidity Provision

Summary

xU3LP are a class of xTokens that are ERC-20 wrappers for specific Uniswap v3 liquidity providing strategies. xU3LP tokens are set-and-forget tokens requiring no active participation from holders. We have eight instances of xU3LP, each designed to give users passive, convenient, & fungible yield.

Current Strategies

Each strategy consists of a token pair and a specific price range in which the strategy makes the token pair available for swaps between the token pairs. Each xU3LP contract claims swap fees generated by our strategy and automatically reinvests them into the underlying Uniswap liquidity pool allowing holders to compound their earnings.
xU3LP Instance
Token Pair
Price Range
xU3LPa
DAI & USDC
(0.9994, 1.0014)
xU3LPb
USDC & USDT
(0.999, 1.001)
xU3LPc
sUSD & USDC
(0.9974, 1.0054)
xU3LPd
sETH & wETH
(0.999, 1.001)
xU3LPe
wBTC & renBTC
(0.995, 1.003)
xU3LPf
USDC & UST
(0.9974, 1.0034)
xU3LPg
FRAX & USDC
(0.9944, 1.0044)
xU3LPh
BUSD & USDT
(0.9984,1.0014)

Range Analysis

A major improvement of Uniswap v3 is the ability of liquidity providers to deploy assets to a specific range of prices as opposed to Uniswap v1 & v2 where all assets were automatically deployed in equal parts at all prices from zero to infinity for every liquidity provider.
Uniswap v3 requires liquidity providers to pick the price range they're willing to provide assets to for each unique liquidity pool. As a result of this decision being left to the liquidity provider, an entire design space opens up for the provider to deploy assets strategically and efficiently in each pool.
Each strategy above reflects our view of each asset pair and how they trade against each other. Click here to learn why and how we picked our price ranges for each asset pair.

Significance of Uniswap v3

Risks

xU3LP strategies are risky and highly experimental tech. Additionally, the success of xU3LP strategies is highly dependent on the volume routed through our Uniswap v3 positions and xToken's ability allocate to optimal price ranges. In order to maximize returns, roughly 95% of the capital in xU3LP strategies is locked at a given time. In order to maximize returns, the fund aims for 5% of liquid captial (2.5% on each asset) of xU3LP being available at a given time. Holders may not have full direct exit liquidity available when desired and may have to wait for the fund to rebalance Do your own research on the risks of the xToken platform and Uniswap v3.
xU3LP has been audited by iosiro. Additionally, QuantStamp has performed a security review. Read the reports here.
Last modified 1mo ago