Searching for Alpha: Bunni V2

Over the past several years, liquidity provisioning in DeFi has evolved from fixed curves (e.g. Bancor, Uniswap V2, Curve V1) to concentrated liquidity (Uniswap V3, Curve V2). The introduction of onchain concentrated liquidity subsequently spurred the development of liquidity management tools (e.g. Charm, Gamma) and protocols with natively incorporated dynamic liquidity (e.g. Maverick). 

While concentrated liquidity has improved liquidity for users, boosted capital efficiency for LPs, and facilitated significant growth in onchain spot trading (Figure 1), it has also yet to fully replicate the UX of passive liquidity. Most notably, providing concentrated liquidity requires active management and can have significantly worse risk profiles for most users. Additionally, tokenization of concentrated liquidity positions involves more complex accounting and limits composability with other protocols.