Gamma Integrates with Olympus Pro for Uniswap v3 Bonds

Gamma has embarked on a strategic partnership with OlympusDAO to provide a way for protocols to bond Uniswap v3 positions. Float Protocol was the first protocol to utilize Gamma and Olympus Pro to bond FLOAT-ETH liquidity, and we are paving the way for more protocols to utilize Olympus Pro & Gamma for bonding Uni v3 positions by bonding our own GAMMA-ETH liquidity.

What is Olympus Pro bonding?

Olympus Pro bonding is a platform for protocols to be able to purchase their own liquidity in exchange for discounted governance tokens. The protocol buys back that liquidity directly from the public who exchange LP tokens for the discounted protocol tokens, which vest over a certain period of time, typically 7 days. To illustrate a simple example, a bond purchaser would exchange $1,000 worth of GAMMA-ETH LP tokens to receive $1,100 worth of GAMMA tokens in 7 days.

The Gamma integration allows protocols to directly bond Uniswap v3 liquidity. Previously, Olympus Pro only allowed the bonding of Uni v2 or Sushi positions because their platform is only compatible with bonding ERC-20 LP tokens. The Uni v3 LP tokens are represented by ERC-721 NFTs, which are incompatible with Olympus Pro. To solve this issue, Gamma issues ERC-20 LP tokens that represent a Gamma-managed liquidity position on Uniswap v3. That LP token is then capable of being bonded on Olympus Pro, effectively bonding a Uni v3 position with the added benefit of having that position managed by the top-of-the-line strategies developed by Gamma Strategies.

What are the steps needed to bond?

  1. A bonder will receive GAMMA-ETH LP tokens from on the Gamma front-end by depositing both GAMMA and WETH in the Gamma front-end dashboard.
  2. After approving and depositing a proportional amount of WETH and GAMMA, the buyer will receive ERC20 LP tokens that represent shares of a GAMMA-managed Uni v3 position for GAMMA-ETH. The assets deposited would then be subsequently managed on Uni v3 by Gamma.
  3. The bonder will then head over to the Olympus Pro marketplace, and simply follow the steps to bond the LP tokens for the GAMMA-ETH pair (to be listed in the next cohort)

Why should protocols utilize Olympus Pro bonds?

The main advantages to Olympus Pro bonds are that it allows protocols to source their own liquidity by paying strictly with their own governance tokens. The vesting period makes it so that the bonder has to take the risk of token exposure for a certain period of time which helps filter out pure arbitrageurs.

There is a massive DeFi community that OlympusDAO has cultivated. The exposure to the large community of OlympusDAO may increase the exposure of a protocol’s bond.

Why the partnership between Olympus Pro and Gamma?

The partnership between Olympus Pro and Gamma provides services for both acquiring liquidity and managing that liquidity in the most capital efficient way. Uniswap v3 is the most capital efficient DEX on the market today. The main appeal of Olympus Pro is the ability for protocols to acquire their own liquidity, and the main appeal of Gamma is managing protocol-owned liquidity on Uniswap v3.

By allowing Uniswap v3 positions to be bonded, bonding protocols receive end-to-end liquidity services for both acquiring and managing liquidity.

Contact Gamma

If you are a protocol interested in conducting a Uniswap v3 bond managed by Gamma, please reach out on Discord or Twitter.

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Gamma Strategies

Gamma Strategies

An organization dedicated to researching and funding ‘Active LP’ strategies.

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