Gamma’s AI-Powered Liquidity Strategies for Uniswap Are Coming to Polygon

Polygon Labs

April 4, 2022

Gamma, an active liquidity management platform for Uniswap v3 offering non-custodial, automated, concentrated liquidity management services, is going live on Polygon.

The platform uses machine learning algorithms for predictive strategies to dynamically adjust liquidity ranges based on historical volatility and price action, helping users increase yield and lower price impact on trades.

In December, Uniswap's community voted overwhelmingly in favor of deploying v3 of its protocol on Polygon. Concentrated liquidity on Uniswap V3 is more capital-efficient for projects looking to manage their liquidity. However, it is difficult for retail providers to choose optimal ranges. Gamma manages the ranges on their behalf while optimizing yield and minimizing the risk of larger impermanent losses.

On Ethereum, gas fees for rebalancing the price range can be between $200 to $1,000. With Polygon, it costs less than $1 to rebalance and compound fees, allowing Gamma to use higher strategies to maximize yield.

Protocol-owned liquidity, an approach pioneered by Olympus DAO that seeks to address the “mercenary liquidity” problem using a bonding mechanism, is a recent DeFi trend. Gamma has partnered with Olympus Pro to allow projects to use its LP tokens for bonding and acquiring more liquidity.

Take a deep dive into Gamma’s documentation and check our blog for the latest on the Polygon ecosystem!