Inspiration
Following the model of Uniswap V3, the impact of impermanent loss for LPs becomes more pronounced, particularly in cases when liquidity is concentrated.
What it does
Our project models the impermanent loss and suggest strategies to optimise LPs' returns using various strategies.
How we built it
We use Uniswap V3 subgraph with Python as the main programming language to model the impermanent loss and intend to build a webpage for users to use the model.
Challenges we ran into
Hedging strategies are hard to develop.
Accomplishments that we're proud of
We utilise our mathematical and programming language to create the model, and we successfully come out with some hedging strategies.
What we learned
Some basic knowledge in modelling and possible hedging strategies (instruments) in quantitative finance.
What's next for Tokka labs hackthon
We will integrate the model into a webpage so that liquidity providers on Uniswap could have a more convenient and accurate tool to manage their liquidity positions.
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