Home | News & Insights Leech Protocol’s Q3 2023 RECAP Hey, Leechers! It’s been a wild ride so far! A couple of days before the end of Q3 we are ready to share all the important achievements we’ve completed! Product updates Marketing & Community Updates New partners and protocols onboard! What do we plan to accomplish shortly? As we build an #easyDeFi product – so priority #1 is our Mixed Pools. We will add more pools and protocols to our automated farming algorithms! The process is quite simple: 1️⃣ A user provides liquidity via App 2️⃣ Algorithm search for best APRs 3️⃣ Liquidity goes to connected pools, according to the chosen RISK Level 4️⃣ The user enjoys non-stop yields 5️⃣ If APR goes down – repeat 2️⃣ 6️⃣ Withdraw is available at any moment! The next big thing we have been working on to show it on-chain – is our hedging strategy. Let’s review the historical backtests and describe the strategy’s algorithm below. Here you can see a backtest from Aug 1, 2022 to Jan 6, 2023, using the USDC/OP pool on Velodrome. We started with $100,000 and compounded daily. The average APR during this time was 50.49%, according to Beefy’s historical data. Use of our hedging strategy resulted in a 19.06% portfolio value increase (48.06% annualized), vs. a 0.66% increase (1.58% annualized) by providing liquidity to the pool, and a 17.6% decrease by holding 50% USDC and 50% OP. The strategy rebalanced 50 times, costing $1,010 and resulting in a net gain of just over $18K, or 18%, in just over 5 months. Hedging strategy algorithm: 1 – the user provides his liquidity via our app 2 – smart contract starts managing the liquidity into We automatically close the short position if the price goes up and rebalance it. We are cooking the UNI v3 strategy for the Leech Club members only! Uniswap v3 (CLMM) strategy allows you to hedge the impermanent loss and rebalance the position on any protocol that supports Concentrated Liquidity so that it always remains active. The strategy works on all EVM blockchains where Concentrated Liquidity Protocols are present. Moreover, the strategy works with narrow ranges, that allow generation of high returns on the underlying assets. Backtests showed a 70%+ return on the USDC/ETH pair on the Arbitrum chain and more than 150%+ on medium and low-liquidity assets. Onchain results are really promising and we’ll be sharing more details with interested parties. Mid-term plans GLP neutral strategy GLP-based strategies have a lot of potential despite the current market conditions. This strategy is also highly capital-intensive, and GLP’s utility ecosystem is constantly expanding. We forecast upcoming market conditions when this strategy will be able to accommodate a large TVL with probable returns of ~30% APR (as was previously during the volatile market). Lido Leverage Yield Farming Strategy This strategy utilizes DeFi’s fundamental products and contains the underlying yield of the Ethereum network. It safely exploits the inefficiency between the underlying stake rate and the credit market rate. What should you do next? Share: Twitter Facebook Telegram
