Gamma’s Q3 Recap + Future Plans
Hello Gamma Community!
There has been quite a lot going on behind the scenes this past quarter, and we want to fill you in on what has happened and what is to come.
Q3 Recap:
- 300k $OP distribution to Gamma LPs
- Liquidity mining feature on Gamma
- New partnerships
- New networks
- MakerDAO proposal & lessons learned
Future Q4 Plans:
- Pursuing more liquidity partners and lending partners
- Integrating with Quickswap & Stellaswap
- Re-building the Gamma web app from scratch
- Liquidity mining rewards
Q3 Recap
1. 300k $OP distribution to Gamma LPs
Gamma has received 300K $OP tokens from the Optimism Collective to distribute to their LPs who provide to the OP-WETH pool on Optimism, and we will begin distribution in the beginning of Q4!
In July, Gamma Strategies and xToken Terminal submitted a joint proposal for $OP liquidity incentives on Uniswap v3.
The proposal was overwhelmingly supported by the largest OP delegates, and our joint proposal with xToken was well-received. As such, the proposal passed with 17M or 87.32% of the OP votes in favor of our proposal.
2. Liquidity Mining Feature on Gamma
In order to distribute the $OP rewards, we will be introducing our own liquidity mining feature that will utilize a MasterChef staking contract.
One of the main advantages of incentivizing Uniswap v3 liquidity is you can make a dollar of incentives go really far in terms of achieving liquidity depth. For example concentrating within a +/- 5% range is almost 40 times as capital efficient as a constant product AMM.
For our potential liquidity partners, this means you can save up to 40x of incentivization costs by incentivizing Uniswap v3 liquidity versus full-range liquidity.
If you would like to partner with Gamma Strategies for incentivizing concentrated liquidity for your token pair, please fill out the form here: https://forms.gle/R1JJxtoGTVnsdHog6
3. New Partnerships
Frax Finance & Convex Finance
In July, our proposal to add the FPI-FRAX 0.05% Uniswap v3 pool as a Frax gauge on Optimism passed. Liquidity providers will be able to stake the Gamma-managed LP position for FPI-FRAX on Convex Finance to earn boosted FXS rewards once FPI is bridged to Optimism by the Frax Finance team.
Angle Protocol
In September, Angle Protocol integrated Gamma LP Positions for their innovative Uni v3 gauge system that rewards LPs based on KPI metrics that favor tighter in-range liquidity. Angle Protocol is incentivizing the following gauges:
- agEUR-USDC on Mainnet
- agEUR-WETH on Mainnet
- agEUR-USDC on Polygon
For more details and instructions on how to participate, see this tweet thread here.
LandX
In September, we partnered with LandX, which tokenizes perpetual bonds for commodities such as wheat, soy, corn and rice. Read more about this partnership here: https://blog.landx.fi/partnership-managing-xtoken-liquidity-with-gamma-b586209b8642
Through this partnership, Gamma ensures that LandX has access to cutting-edge liquidity management which will improve capital efficiencies and reduce price impact for users trading xTokens.
Please also watch the recording of our Twitter Spaces here.
Friends with Benefits DAO & Llama DAO
In July, Gamma partnered with Friends with Benefits DAO & Llama DAO to launch an active liquidity management program that would serve to increase capital efficiency and lower price impact for traders in the FWB-ETH pool on Mainnet.
The details our partnership can be found below:
Chee Finance
4. New Networks
Gamma has expanded to Celo & Optimism. We believe that there will be enormous growth potential on L2’s and other blockchains that deliver speed and cheap gas fees.
On Celo, we are currently managing the following pairs: CELO-WETH 0.3% cUSD-cEUR 0.05% cMCO2-CELO 0.3% CELO-cUSD 0.3% USDC-cUSD 0.01%.
We are excited to be working with Celo and the Climate Collective to help onboard and advise ReFi projects building on Celo!
For more information, please see a recording of our Twitter Spaces here.
5. MakerDAO Proposal & Lessons Learned
In September, we submitted a collateral application for the Gamma WBTC-renBTC LP token on MakerDAO. We had decided to submit a collateral application for this pair in particular because both WBTC and renBTC were both approved collateral types on MakerDAO already, and we figured that the ability to generate yield on collateralized BTC with little to no impermanent loss was an attractive offering.
Our proposal did not pass Maker’s greenlight poll for a variety of reasons. The first, as many Maker delegates pointed out, was that the demand for renBTC collateral was very low, and it was not apparent that enough DAI could be generated from the demand for renBTC. We’ve learned that Maker oracles can cost up to $200k/year, so it is imperative that the collateral can generate up to 30M in DAI. Others have pointed out the lack of decentralization of WBTC and renBTC as reasons to reject the proposal. Lastly, many greenlight polls were not expected to pass due to the political turmoil within the Maker governance system.
The main lessons that we took away from this is that we need to propose a pair that is sufficiently decentralized and has enough demand to generate at least 30M DAI. Given Ethereum’s successful transition to proof-of-stake, we are looking at staked ETH pairs such as rETH-ETH and wstETH-ETH as potential collateral that could generate significant amounts of DAI.
Future Q4 Plans
Q4 will be a thrilling quarter for Gamma with the following key pillars:
Pursuing more Liquidity & Lending Partners
- We are looking to partner with lending protocols who would like to use our LP pairs as collateral
- We are also looking for new liquidity partners to provide liquidity management on behalf of and offer our liquidity mining feature
- Please fill this form out here if you want to learn more about our partnership program: https://forms.gle/R1JJxtoGTVnsdHog6
Integrating Quickswap / Stellaswap / Algebra Finance
- Quickswap is developing their own concentrated liquidity model by leveraging Algebra Finance’s contracts on Polygon
- Stellaswap is doing the same but on the Moonbeam network
- We are partnering with both protocols who will be incentivizing our positions with their native tokens
Re-building the Gamma web app from scratch using React
- We will be re-building our web app from scratch which will increase process flow and loading times significantly
- This will allow for a much improved user experience as well as more vault analytics
- We welcome all feedback so feel free to make suggestions in the #design channel on discord.
Liquidity Mining Rewards
- As mentioned previously, we are expecting to have 300K of $OP liquidity mining rewards available to Gamma LPs on Optimism
- More liquidity mining programs are in the pipeline as well
As previously mentioned Q4 will be a thrilling quarter and will set a great foundation for the long term!
Get in Touch:
If you’re a project or individual looking to use Gamma to manage liquidity, or for any other purpose-fit use case don’t hesitate to contact us through https://www.gamma.xyz/contact or fill out this form here: https://forms.gle/R1JJxtoGTVnsdHog6 . Alternatively, you can email brian@gammastrategies.org
About Gamma:
Gamma is a protocol designed for the non-custodial, automated, active management of concentrated liquidity pools. Gamma’s protocol is built into a Web Application hosted on the main Gamma site. This protocol is available to both the Public, and Pro entities like DAOs, treasuries, and protocols.
