A Look at Gamma Strategies

Despite launching over two years ago, optimal utilization of Uniswap V3’s concentrated liquidity capabilities in DeFi remains a relatively open question. On one hand, management of concentrated liquidity positions raised the barrier to entry for DeFi liquidity providers (LPs), excluding many early users from participating. On another, less simplistic tokenization of concentrated liquidity positions also created challenges for composing LP positions within DeFi. Protocols like Gamma aim to mitigate these challenges by developing tools that simplify the liquidity management process. 

Gamma is a liquidity management protocol that worked closely and ultimately merged with Visor Finance in December 2021. The core innovation is the modularization of liquidity management processes into a series of functions which can be called by designated wallets (‘advisors’) for active management pools (‘vaults’). These provide a basis for active management strategies by providing functions for core LP actions, including: