March 18, 2022

Universe Finance Brings Uniswap V3 Leveraged Yield Farming to Polygon

Universe Finance, an active liquidity management platform for Uniswap V3, is bringing leveraged yield farming to Polygon.

In December, Uniswap’s community voted overwhelmingly in favor of deploying V3 of its protocol on Polygon. The most notable difference from its predecessor is the price range of liquidity provided by users. In Uniswap V2, liquidity is distributed evenly along the price curve, with assets reserved for all prices between zero and infinity. V3 introduces concentrated liquidity, allowing liquidity providers to extract higher trading fees in a specific price range, offering risk-taking users some flexibility.

Users earn different returns as per their liquidity, but it also amounts to a higher risk in some cases. For instance, liquidity providers do not make much with excess liquidity. Rebalancing the price range requires an expensive gas fee, and liquidity providers have to deal with larger impermanent losses than under Uniswap V2.

Universe Finance’s quantitative analysis team functions as a professional active liquidity management platform. After extended backtesting research, they have created strategies for different market conditions to help users manage Uniswap V3 liquidity.

Users of the platform can now take advantage of leveraged vaults, the newest addition of Universe Finance, available only on Polygon:

USDC/WETH 0.3 % - 6X maximum leverage
MATIC/USDT 0.05 % - 6X maximum leverage
MATIC/USDC 0.3 % - 6X maximum leverage
MATIC//WETH 0.05 % - 6X maximum leverage
MATIC/USDC 0.05 % - 6X maximum leverage
USDC/WETH 0.05 % - 6X maximum leverage
MATIC/WETH 0.3 % - 6X maximum leverage
WBTC/WETH 0.05 % - 6X maximum leverage
USDC/USDT 0.05 % - 8X maximum leverage

Once investors borrow assets from these lending vaults, Universe Finance integrates the borrowed tokens and their own money to provide liquidity in the Uni-V3 smart vaults. The U-Tokens signifying how much you deposit in a smart vault on Universe Finance will be used as collateral.

Get started with Universe Finance’s leveraged yield farming and stay tuned to our blog for more updates on the Polygon ecosystem!