OrangeFinance: A liquidity management tool that can hedge Uniswap V3

特邀专栏作者

2023-04-25 18:40 (UTC+8)

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You only need to deposit your own USDC, and Orange will automatically earn income by managing the liquidity of Uniswap V3.

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You only need to deposit your own USDC, and Orange will automatically earn income by managing the liquidity of Uniswap V3.

Original compilation: Kxp, BlockBeats

first level title

concentrated liquidity

We all know that Uniswap V3 introduces the concept of "concentrated liquidity", that is, the ability to define a specific range of liquidity you want to provide, which greatly improves the capital efficiency of LPs.

first level title

Orange Finance

first level title

Alpha Orange Vault

Alpha Orange Vault is Orange's first product that manages the liquidity of the ETH/USDC trading pair on Arbitrum. After thorough backtesting and tuning, the library managed to achieve a 25% annualized return during the ETH price drop.

Operation mode:

Orange outperforms other liquidity management protocols primarily due to two key components:

1. Orange has created a unique hedging control system that allows the protocol to hedge a certain amount based on price movements.

2. Orange uses an offline strategy module that automatically rebalances and rearranges positions based on market conditions. These modules allow Orange to consistently obtain sustainable and risk-adjusted returns in any market conditions.

Other features:

· Automatic compound interest for treasury rewards

Orange LP tokens can be used to provide centralized liquidity for liquidity mining, to incentivize holders to provide centralized liquidity within certain price ranges to get more rewards

· Only need USDC deposit

Specific effect:

I mentioned it before, but during the latest backtest period, the vault managed to achieve a 25% annualized return during the ETH price drop, and about 95% annualized return from transaction fees alone.

Competitors:

future outlook

Next steps:

· The first vault will be launched on 4/28

· Launched multi-chain treasury

· Support longer tail assets

· Support for non-Uniswap positions (Curve, Balancer, other centralized liquidity protocols, etc.)

Token issuance:

We have confirmed that there is a token, but it may be a while. But you have nothing to lose by following the project and getting involved.

Alpha Orange Team:

Summarize

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