Avantis
Search
⌃K
Comment on page
💡

UNI-V3 Moment: Time and Risk

Avantis unlocks a new design space for oracle-based trading protocols via granular time and risk management for liquidity providers
​
Traditionally, LPs of oracle-based perpetual trading protocols (like GMX or Synthetix) have all been very passive. This means that during good times, every LP profits equally, and during bad times, every LP loses equally. For oracle-based trading to reach the volumes of spot trading protocols, there needs to be a robust set of parameters that LPs can fine-tune to express their individual view on the market.
Much like Uniswap's V3 architecture unlocked flexibility for LPs of spot AMMs (by allowing LPs to choose a range of prices for liquidity provision), Avantis unlocks flexibility for its LPs by adding time and risk parameters. This effectively means that as an LP, you can choose to be on the lowest or highest end of the risk-spectrum, based on your view of the market. See the sections on Risk Management and Time Management for more details
​
​