Uniswaption Case Study

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Overview

The Uniswaption app was created in under ten days for the Uniswap Unicode Hackathon. The goal of the app was to find an easy way to identify liquidity opportunities on UniswapV3. Today finding a token-pair price range that meets LP’s risk appetite is difficult. LPs have differing risk appetites. Pools have differing APY distributions. Price ranges have different probabilities of hitting pool ceilings and floors. All of these may cause an impaired loss.

How It Works

Uniswaption.com lets LPs easily compare pools and find liquidity provision opportunities that match their risk appetite in three easy steps:

1 - Select Token Pairs: Historical prices are retrieved from Covalent API and fitted using Chance-data distributions

2- Calculate Liquidity Percentage: Query tick liquidities and calculate range liquidity as percentage of total

3 - Interactively Evaluate: Visualize pools based on user’s risk appetite

Next Steps

Immediate Technology Improvements Using decentralized storage to store historical risk distributions. This will let anybody that has access to the data to easily compare pools and find liquidity provision opportunities that match their risk appetite. It also acts as a step towards proof of analysis of risk distributions and disclosure.

Give user the ability to fetch more currencies. Closely related to storing the chance-data so it may be reused is adding more currency pairs to the app. Once a risk distribution is created any other app user may use it.

Improve on the idea: Once the analysis is done the app aims to facilitate the trade and follow the performance. It is also envisioned to create more views of the data that dynamic aggregate a portfolio of positions.