Arrakis Finance on Optimism

    Optimism

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    ๐Ÿ“ Introduction

    โšซ Protocol Information

    Arrakis is a protocol that specializes in concentrated & active liquidity management. By creating a curated marketplace of novel tokenized LP strategies, Arrakis facilitates deep liquidity and optimizes LP earnings across its vaults.

    Arrakis has one mission:

    > to become web3โ€™s liquidity layer, enabling LPs and tokenized projects to optimize their DEX liquidity on and across multiple blockchains in a seamless and automated manner.

    The platform is a reaction to the problems that many projects in web3 are facing today:

    • Traditional Uniswap v2 AMMs provide a one-size-fits-all liquidity solution. While being simple, they lack efficiency and are costly to subsidize liquidity programs
    • Next generation AMMs like Uniswap v3 provide liquidity efficiency improvements, however at the cost of added complexity and risk to LPs
    • The multichain landscape made liquidity increasingly fragmented & the operational overhead of managing liquidity exponentially higher
    • Projects are forced to spend an unnecessary amount of time & resources on complex topics such as active liquidity management, cross-chain liquidity provision, and modeling expenditures on market making programs

    Arrakis, previously known as G-UNI, set out to solve these issues in February 2021.

    Arrakis at its core is a protocol that specializes in concentrated & active liquidity management. It solves the aforementioned problems by creating a curated marketplace of novel tokenized LP strategies that facilitate deep liquidity and optimize LP earnings.

    The Arrakis DAO overseeing this protocol is the coordination point for projects looking to aggregate & bootstrap liquidity effectively and the most attractive destination for market making strategists to design automated liquidity provision strategies.

    By abstracting liquidity management and directing it towards advanced market making strategies, Arrakis becomes a highly useful primitive. Arrakis opens the door for a new area of decentralized market making with potential for tokenized products like:

    • Auto-Hedged delta neutral LP positions
    • Sophisticated multi-positions on concentrated AMMs
    • Cross-AMM positions
    • LP positions coupled with lending/borrowing or options markets
    • Cross-chain strategies

    The overall purpose of the protocol is to aggregate, grow and sustain the best-in-class strategies for effective DEX liquidity provision, openly accessible to all and seamlessly composable with the rest of DeFi.

    ๐Ÿ“ƒ Purposes of dashboard

    In this dashboard, the Arrakis Finance protocol is analyzed on the Optimism network. In fact, the amount of liquidity provided and removed by users is deeply evaluated.

    โœ๐Ÿป Methodology

    • In this dashboard, the following tables are used to extract data:
      • optimism.core.fact_token_transfers โ†’ This table is used to calculate the amount of liquidity provided or stolen by Arrakis platform users.
      • optimism.core.fact_hourly_token_pricesโ†’ To get the volume of liquidity in terms of USD, the price of different tokens was needed, which was used to extract this data from this table.

    Charts are reviewed on a weekly time frame.

    ๐Ÿ’ก Conclusion

    Analyst: Emanoel

    ***Twitter: ***

    Discord: Eman#9698

    Special thanks to the Flipsidecrypto ๐Ÿงก

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