Unisave founder Kojima talked about the project’s exploration of improving capital utilization and reducing slippage.
Original title: “Low capital utilization? Large transaction slippage? See how Unisave optimizes Unisawp | Spark Interview
Written by: X-Order & Kojima
Last time we interviewed Kojima’s DeFi project Y3D, she spoiled to us that she is developing a new project that combines Uniswap and Year-Unisave. Two months later, this project has already started mining on Binance Smart Chain and locked up $1.5 million, but it seems that she has added some other features to this project, so we talked with Xiaodao again.
The following is the content of the interview. In addition, this article is only our observation and record of the market, not investment advice, investment is risky, please make careful decisions.
Q: We saw that Unisave was recently released on Binance Smart Chain and it was retweeted by Binance’s official social media. Can you tell me why we chose to go to Binance Smart Chain instead of developing on Ethereum this time?
A: In general, there are three reasons:
- Handling fee
- compatibility
- Quality assets
The main reason is that Ethereum development is too expensive. In the past few months, I spent about 10 ethers on deploying contracts, which is equivalent to about RMB 30,000, which is really unaffordable for an independent developer. In contrast, the cost of deploying contracts on Binance Smart Chain is almost a cabbage price, almost negligible.
On the other hand, Binance Smart Chain can be said to be one of the development environments with the best compatibility with Ethereum at present. Although many public chain platforms also support EVM, they cannot well support other developer tools in the Ethereum ecosystem. , I may feel that there is no impact at ordinary times, but not having these wheels when they happen to be used will greatly increase development costs.
Another reason is that there are many high-quality token assets on the Binance Smart Chain, which are not available on some emerging public chains where the ecology has not yet started.
Finally, the Binance Smart Chain is still at a very early stage, and the official will also provide some substantial assistance to developers, which will have many ecological dividends. So in general, Binance Smart Chain may be the most balanced development environment.
Q: How long did it take you to develop Unisave?
A: Actually, we have been running on the Binance Smart Chain mainnet for a month and released three versions. The first version is based on Uniswap, which treats each trading pair as a Vault and connects to the machine gun pool for mining. At present, we use YFII. In theory, any machine gun pool with a lossless strategy can be used. If YFI If the YIP-51 is approved, we can also use YFI. Of course, this can also be written by ourselves to further optimize performance.
Later, we noticed that as a new AMM, it is difficult for us to compete with other AMMs that have formed a moat. Whether it is the original Uniswap and the fork king Sushiswap, even the TVL of Pancakeswap on the Binance smart chain was us at the time. Thousands of times, so we added another feature called virtual liquidity, so that Unisave can use external liquidity to calculate its own slippage, in order to achieve the effect of “four by two.”
After this update, as the fundamentals of Dex, the trading volume has been greatly improved compared to the lock-up volume. Some trading pairs have even better slippage than Pancake and Sushi, second only to Uniswap, and this is in our TVL is orders of magnitude worse than competitors. Later, we optimized the logic of automatic mining and added more on-chain Events to optimize Info information, and released the current version.
Q: Can you briefly introduce what is “virtual liquidity”?
A: “Virtual liquidity” is to participate in slippage calculation, but there is no external liquidity of asset Backup in the contract.
In fact, the concept of “virtual liquidity” was originally planned when we designed the algorithm of Kyubey’s DAICO and Matataki’s initial liquidity offer for Fan votes. Because of the earliest Bancor liquidity crowdfunding algorithm, all liquidity will be locked. In the contract, then developers and creators have no way to use the funds to engage in development and creative activities. At that time, our design was whether it was possible to slowly convert part of the real liquidity into virtual liquidity over time Sex, and let creators withdraw funds from the contract?
Later, when I was in trouble designing the Unisave algorithm, I saw the “Hunyuan Xingyi Taijiquan” series on station B. Ma Zhangmen said that the core style of traditional Chinese Kung Fu is to combine and transform hair, that is, to talk about the yin and yang, the virtual and the reality, and the strength to fight. I finally realized it in a daze. . .
Unisave’s virtual liquidity is also the same. The earliest design of Unisave’s virtual liquidity is to directly use Uniswap’s same pair’s liquidity, so that my liquidity is external and internal, so my slippage is always lower than Uniswap.
Q: Can you talk about the difference between the static “virtual liquidity” algorithm and the dynamic “virtual liquidity” algorithm?
A: The design of “virtual liquidity” mentioned above will obviously be attacked by lightning loans. We need to use an absolutely secure Oracle algorithm. Moreover, after the introduction of Oracle, we can also actively adjust the virtual liquidity through an Observer contract, so as to achieve the same effect as the active market maker algorithm in DODO.
We call the algorithm that uses the Overver contract to dynamically adjust the “virtual liquidity” as the “adaptive market maker algorithm”. This algorithm is named after one of my life Mentor, a doctoral supervisor at CMU University, and a link-cut tree The inventor, Professor Daniel Sleator, pays tribute. The Splay used in Link-Cut Tree is also called an adaptive balanced tree, and the data structure also happens to have the concepts of “virtual edge” and “real edge”.
However, this Overver contract is still undergoing a difficult audit process, so the Unisave currently listed on BSC is not in complete form. However, even if the current production environment uses a static “virtual liquidity” algorithm, it is worthy of scrutiny, because It is equivalent to leveraged LP Token. At the cost of expanding potential impermanent losses, under the same price fluctuations, it can allow LP to obtain higher handling fees. This is already a very meaningful design. I have done mathematical derivation on Medium and Matataki, the functional relationship between the proportion of virtual liquidity and fee income, and the transaction window. Interested readers can read my previous article .
Finally, to summarize my changes:
- Calculate price and slippage: consider “virtual” + “real”.
- Calculate liquidity: only consider “real”.
As mentioned earlier, Uniswap’s biggest problem is its extremely low capital utilization and poor transaction slippage. And we only made minimal changes to Uniswap, but it did completely change the performance of Uniswap, and even the subsequent expansion of Oberver contracts can be used to simulate Curve, Bancor, or DODO’s Bounding Curve.
Kojima believes that “Adaptive Market Maker Algorithm” is her most perfect work so far
Q: Is there a relationship between Unisave and Y3D?
A: In fact, the design ideas of Unisave and Y3D are still in the same line. We even copied a lot of codes designed during Y3D, such as the aggregator part and the current mining contract. We found that many Uniswap-Like Forks experienced a liquidity cliff after the end of mining, but our earliest version of Y3D still maintained more than 83.33% TVL after three months. The reason is that we introduced The mechanism of P3D to reward long-term supporters of the project is actually the design of the entry-level Gamefication.
So this time Unisave’s last two mining pools, a BUSD/USDT stable currency LP five times pool, and the last Y3D/BUSD LP ten times pool, we have continued this design here.
BTW, Y3D/BUSD mining will start at 21:00 Beijing time this evening, after the YFII community’s Community Call. I will also introduce our specific algorithm design and data in the live broadcast tonight. Those who are interested can pay attention to it.
Source link: mp.weixin.qq.com
