4d ago
Liquidity Providers (LPs) are key to DeFi. Anyone can become one, but not everyone profits equally.
Platforms like Uniswap v3 reward skilled LPs who manage active ranges well, while most retail LPs often struggle with impermanent loss and low returns.🧵
2/ Tools like Meteora's DLMM strategies help retail LPs automate liquidity, but you still need to watch for out-of-range positions as markets move.
Liquidity shifts constantly.
So, what if your AMM could adapt itself in real-time?
3/ That’s where Tapio comes in.
Powered by dynamic parameter setting and Parameter Managers, it starts with correlated assets and enables real-time tuning without governance delays, even in volatile markets or small pools.
This is the evolution of passive liquidity providing.
4/ Unlike static approaches where A coefficients stay fixed for weeks (requiring lengthy governance to change), Tapio enables real-time market responsiveness while keeping everything within a secure, predefined range.
5/ What does dynamic A tuning unlock?
- Real-time market adaptation
- Lower slippage
- Softer curve during volatility
- Reduced impermanent loss
- Higher capital efficiency
6/ We've backed this with solid research: using trade-level on-chain data, validated by 50k Monte-Carlo simulation paths per config across pools like USDC-DAI, USDC-ETH, 3pool, and stETH-ETH.
Result? ~4% TVL-weighted average utility boost over the best static methods.
7/ What does this mean for users?
Less slippage → More trades → Higher fees → Deeper liquidity
It’s a self-reinforcing loop. LPs earn better yield passively, as Tapio’s dynamic A auto-adjusts to market volatility.
9/ End tweet
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