In 2018, Uniswap introduced the concept of liquidity pools and automated market makers (AMM) through the Uniswap DEX. This allowed Liquidity providers to deposit an equal value of two different tokens into a liquidity pool, in return the liquidity providers earn fees from transactions within the pool respective to their pool share. This innovation led to the introduction of DeFi (Decentralized Finance) and bootstrapped liquidity incentives for liquidity providers through airdrops and high yields farms AKA DeFi Summer of 2020. During this craze, projects like Compound, Balancer, Yearn and AAVE pioneered into DeFi attracting hundreds of millions in TVL and thousands of active LPs as token prices for farm coins skyrocketed; however, there was a downside. These liquidity provider tokens came in low supply, causing the price to be greatly impacted during larger swaps resulting in impermanent loss, and frontrunning for some traders. This was due to a lack of concentrated liquidity and liquidity providers. A few years later, Uniswap attempted to solve this through Uniswap V3, which included features like custom price ranges for LPs, allowing them to provide within a specific range. It also featured fee sharing, and ranged fees, which gives liquidity providers more control over their earnings and allows them to earn higher fees during volatility.

Uniswap V3's specific price ranges for LPs helped make Uniswap pools more capital efficient; however, it was much more complicated to use than V2 meaning it would require more knowledge involving price ranges and impermanent loss. It also requires more management as the price range will not be within range, which increases risk. Furthermore, large LPs require constant upkeep and risk management, which before Automated Liquidity Management (ALM) was done manually.

Tables Of Contents:

• Overview
• Token Fundamentals & Tokenomics
• User Analysis
• Gamma Vault & Pool Metrics
• Comparitive Analysis

Methodology :

• ethereum.core.ez_dex_swaps
• ethereum.core.ez_token_prices
• ethereum.core.ez_token_transfers

Contracts:

• 0x6BeA7CFEF803D1e3d5f7C0103f7ded065644e197 -- $GAMMA
• 0x6BeA7CFEF803D1e3d5f7C0103f7ded065644e197 -- xGAMMA Staking Contract

Introducing Gamma, Gamma is a protocol designed for non-custodial, automated, and active management of concentrated liquidity.

Gamma's key features include:

• Vault: non-custodial position manager contract that can manage a liquidity pool with strategies. These vaults create tokens for the user that can be used for internal and external incentives.
• Automated Liquidity Management:

ALM can help to reduce frontrunning by automatically rebalancing liquidity pools to ensure that there is always enough liquidity available to support large trades. This makes it more difficult for arbitrageurs to frontrun trades, as they will not be able to predict with certainty where the liquidity will be located. ALM can also help to reduce slippage by automatically placing orders at the best possible price. Slippage can happen because when the price of an asset is constantly changing, and the market order may not be filled at the price the user expected. These are just a few of Gammas' many strategies that were created to ensure LPs earn passively while managing the risk on their position accordingly.