Gelato Network launches ‘G-UNI’ Uniswap v3 management token
The Gelato Network has released today the details of their “G-UNI” Uniswap v3 management system. G-UNI aims to perpetually maintain a liquidity range of 5-10% within the current price of an asset pair, with an oracle network checking prices and rebalancing liquidity pool position ranges every half hour. Fungible UniV3 LP (G-UNI) tokens automatically re-invests trading fees for compounding returns.
While Uniswap v3 allows liquidity providers to earn more fees by concentrating their funds at specific prices, it opens them up to risk of impermanent loss if the prices of the trading pair moves beyond the provider’s specified range.
The blog post notes that G-UNI’s auto rebalancing brings the benefits of concentrated liquidity, but with the option of passively managing the position in a manner more in line with Uniswap v2.
“The advantage of this includes that users can sit back and relax as all the difficulties that come with monitoring LP positions are taken care of.”
Hilmar, a self-described “Legendary Member” of Gelato, noted that projects can now incentivize concentrated liquidity in “pool 2” liquidity pools.
