💸Protocol Managed Market Making

Next Level of Liquidity Management in DeFi

Vimverse builds its liquidity on Uniswap V3. Unlike Uniswap V2, which spreads liquidity across the entire price range, Uniswap V3 allows Vimverse to strategically concentrate funds within specific price ranges. This innovative approach, known as Protocol Managed Market Making (PMMM), enables Vimverse to optimize its approach to liquidity management.

Vimverse elevates OlympusDAO‘s Protocol Owned Liquidity (POL) to the new level. Instead of exchanging LPs for the protocol's token, Vimverse enables users to purchase reserve bonds using single assets like USDT. The proceeds from the bond sales go to the treasury, and the protocol utilizes the funds like USDT to automatically form a trading pair with the VIM token in the DAO. After that liquidity is strategically added based on the most optimal price range. In essence, Vimverse not only owns its liquidity but also proactively manages it.

This refined approach to liquidity management yields several benefits:

• Agile and flexible position management, mitigating drastic price swings.

• Enhances capital efficiency, boosting income derived from transaction fees.

• Minimizes slippage, improving user's trading experience.