Hello LPs! We are thrilled to introduce two transformative features to the Revert toolkit, enhancing your LP experience on Uniswap v3: Auto-Exit and Auto-Range. These features have been meticulously crafted to streamline your liquidity provision and protect your investments.
Firstly, let's explore Auto-Exit.
As a Uniswap v3 liquidity provider (LP), have you ever wished you could automate your liquidity withdrawal when the price hits a certain value? With Auto-Exit, this is now possible. Auto-Exit lets you pre-configure a position so that the liquidity is automatically withdrawn when the pool price reaches a predetermined value. Moreover, you can optionally configure the system to swap from one token to the other on withdrawal, providing a safety net for your investments akin to a stop-loss order.
Next up is Auto-Range.
Auto-Range automates the process of rebalancing your liquidity positions. When the token price moves and your position goes out-of-range by your selected percentage, Auto-Range springs into action. The system then automatically rebalances your position, by withdrawing the liquidity and recreating it with the same range width but centered around the current price, ensuring your liquidity stays in-range and collecting fees always.
Tracking PnL across rebalanced positions can be tricky, and of course it’s important to remember that, depending on your investment strategy, divergence loss is a crucial part of the PnL equation. Measuring each rebalanced position separately might be deceptive with regard to the actual divergence loss that becomes permanent on each rebalance operation. Taking this into account, coming very soon, your Revert dashboard will aggregate auto-range positions into one, providing you proper analytics for these multi-position strategies.
How do automated actions work
To activate the automated actions LPs authorize the Auto-Exit or Auto-Range contracts to act as an Operator for their positions. Upon this authorization, Revert bots start monitoring the activated position. These bots execute the prescribed operations - withdrawal of liquidity or rebalancing - when the predefined conditions are met.
To support the automation, a fee of 0.25% of the position value is levied for each operation executed by the bots. However, it is crucial to note that if the gas cost for an operation exceeds this fee, the bots will not perform the operation. The UI will display a message indicating if the position is close to the lower limit threshold given the current gas costs.
The security of these operations is of utmost importance, and we have taken rigorous measures to ensure the reliability of our new offerings. Both the Auto-Exit and Auto-Range contracts have undergone rigorous auditing by Hydn, with an audit report that can be read here.
We anticipate that these innovative additions to the Revert toolkit will greatly benefit LPs by providing advanced automation and risk management capabilities. Give them a try from your position dashboard.