As a web3 protocol founder, you know the importance of providing liquidity for your token markets on Uniswap. But managing and optimizing market-making strategies can be time-consuming and require technical expertise. Don’t fret! Steer Protocol can help.
Steer Protocol is a concentrated liquidity market maker that allows for multiple positions within a single market-making strategy vault. This means you can easily apply liquidity in any style and shape, such as a normalized curve within a given price range. But the real game-changer is Steer’s no-code interface, which allows web3 protocols to easily create and manage their own market-making strategies without the need for technical know-how.
Benefits of Automated Market Making for Concentrated Liquidity
With Steer Protocol, web3 protocols can benefit from the following:
- Easy replication of successful liquidity strategies
- Steer’s dApp Store offers a range of pre-built market-making strategies that have been proven to work. You can easily use these strategies for your own token or customize them to fit your specific needs.
- Flexible capital allocation
- Each concentrated liquidity model allows you to choose how much capital to allocate to each market-making strategy. This means you can fine-tune your liquidity provision to maximize returns and minimize risks.
- Incentivized vaults
- Steer Protocol allows you to create incentivized vaults that can be used to bootstrap liquidity into your market-making strategies. This can help you attract and retain liquidity providers, which is essential for the success of your token.
- No-code interface
- The best part about Steer Protocol is that it offers a no-code interface that allows you to easily create and manage your market-making strategies without the need for technical expertise. This means you can focus on running your web3 protocol.
How Steer Protocol Works
At the heart of Steer Protocol is a network of nodes that work together to compute off-chain tasks, such as concentrated liquidity market making. To ensure the integrity of the network, multiple nodes must come to a consensus on-chain before strategies are executed. This consensus mechanism helps to prevent fraud and ensures that all nodes agree on the actions being taken. Steer nodes facilitate the secure execution of the various strategies which are published on the network. This is accomplished by utilizing a fully sandboxed execution environment.
Steer Protocol also provides a single-click backtesting tool that can be run on a desktop and in-browser to understand the expected outcome of a given strategy and various performance statistics. This allows users to test and optimize their strategies before deploying them on the network. Overall, Steer Protocol offers a powerful and flexible solution for building and running financial applications on the decentralized web.
Once the vault is created, anyone can easily add liquidity to the strategy using Steer Protocol’s dApp interface. This allows easy access for liquidity providers so they can choose how much capital to allocate to each strategy that has been published.
Once your market-making strategy is in place, the Steer Protocol network will automatically execute the liquidity strategy for the token market on Uniswap. This includes executing trades and adjusting liquidity allocation.
In conclusion, Steer Protocol offers web3 protocols a powerful and easy-to-use solution for managing and optimizing market-making strategies. With Steer’s no-code interface, web3 protocols can easily create and manage their own market-making strategies, providing concentrated liquidity for their token markets on Uniswap.