Difference between revisions of "Arrakis Finance"

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Built on [[Uniswap (UNI)|Uniswap]] V3, Arrakis deploys automated [[liquidity]] management strategies.


==Basics ==
[[Category:Companies/Organisations]]
* Based in:
Built on [[Uniswap (UNI)|Uniswap]] V3, Arrakis deploys automated liquidity management strategies.
*Founded in: [https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e 5-2019]
* [[Mainnet]] release: [https://twitter.com/gelatonetwork/status/1279013156585721856 3-7-2020]
*Behind Gelato Network
== History ==
* Started out as just Gelato which [https://blog.gnosis.pm/bots-on-ethereum-if-you-cant-beat-them-join-them-meet-gelato-774f01bec9d7 Allowed] (5-2-2020) users to create a personal bot that automatically interacts with different applications on [[Ethereum]].


* From their [[Mainnet]] [https://medium.com/@gelatonetwork/ethereums-automation-protocol-gelato-network-launches-on-mainnet-88647aa10d65 announcement] (3-7-2020):
==Basics==
"''In February 2020 Gelato published its [https://blog.gnosis.pm/bots-on-ethereum-if-you-cant-beat-them-join-them-meet-gelato-774f01bec9d7 Alpha release]. The [[alpha]] hid away most of what Gelato actually is meant to be behind a Web Interface, which meanwhile has been deprecated. This early phase showcased how Gelato can be leveraged to equip end-users with their own IFTTT-like Ethereum bots that can execute arbitrary actions on their behalf, in just one or two [[transactions]], without them needing to write a single line of code. For many users, this opened the door to a new kind of [[decentralized app]] usage — an automated, yet fully non-[[custodial]] one. However, underneath this simple UI a new smart [[contract]] protocol was hiding that now has been audited and deployed onto Ethereum Mainnet."''
*Based in: [https://twitter.com/defiprime/status/1503816697332961281 Switzerland] (16-3-2022)
== Audits & Exploits ==
*Started in / Announced on:
*[[Testnet]] release:
*[[Mainnet]] release:
*Built by [[Gelato (GEL)|Gelato]], FKA G-Uni
==History==


*[[Bug bounty]] program can be found [insert here].
* From their [https://docs.arrakis.fi/arrakis docs] (8-2022):
*[https://github.com/gelatodigital/gelato-network/blob/master/docs/audits/G0Group-Gelato2020Jun.pdf Got audited] by G0 Group (17-6-2020).
 
''"In the current [[Decentralized Exchange (DEX)|DEX]] environment there is a trade off in terms of ease-of-use and the efficiency. [[Automated Market Makers (AMM)|AMMs]] with a constant function market maker curve, meaning any AMM that only has 1 price curve such as [[Uniswap (UNI)|Uniswap]]V2 and their [[Fork|forks]] make the largest trade off in this section. These AMMs provide [[liquidity]] from a price of 0 to ∞ meaning that they are extremely capital inefficient since the price of an asset is neither close to 0, nor close to ∞. Due to this capital inefficiency it affects all the other components. It results in low liquidity depth, because the funds for liquidity are distributed equally throughout the whole price range, this of course makes there be a high amount of slippage. A high amount of slippage means that there is a lot of volatility, as well as means there is low amount of volume as people don't like trading something with high slippage.''


=== Bugs/Exploits ===
''Due to these factors we truly believe that a protocol like Arrakis is required that helps projects, make concentrated liquidity DEXs such as Uniswap V3 easier to use, furthermore making liquidity no longer be a topic that projects need to care about themselves. As a project matures, the liquidity profile should mature as well. Via automated liquidity optimisation we can make sure that a project gets what it needs in terms of liquidity at the moment in time.''


* [https://weekinethereum.substack.com/p/week-in-ethereum-news-december-18?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo0NTYyNTQ2MCwiXyI6IjBjVnVWIiwiaWF0IjoxNjM5OTc0NjI0LCJleHAiOjE2Mzk5NzgyMjQsImlzcyI6InB1Yi0xMDcxIiwic3ViIjoicG9zdC1yZWFjdGlvbiJ9.NXxhcbhxqHwL From] [[Week In Ethereum|Week in Ethereum]] (18-12-2021):
''Arrakis, [https://snapshot.org/#/gelato.eth/proposal/0x4e583d24a09e2937c6020c3bc86fad37b9d41093e5f4f3f3e0a19767ebf28a20 previously known as G-UNI], set out to solve these issues in February 2021. Since that time, the protocol has demonstrated exceptional growth on every conceivable metric. As of this writing (21st May 2022), Arrakis has $745 million in [[Total Value Locked (TVL)|TVL]] in its [[Liquidity Provider (LP)|LP]] vaults — which comprises roughly 19% of Uniswap v3’s entire liquidity. This makes Arrakis the largest LP on Uniswap v3 by far, all without having any native [[Liquidity Mining|liquidity mining]] incentives."''


==Audits & Exploits==
*[[Bug bounty]] program can be found [insert here].
*Audits of V1 can be found [https://docs.arrakis.fi/audits here] (8-2022)
===Bugs/Exploits===
*[https://weekinethereum.substack.com/p/week-in-ethereum-news-december-18?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo0NTYyNTQ2MCwiXyI6IjBjVnVWIiwiaWF0IjoxNjM5OTc0NjI0LCJleHAiOjE2Mzk5NzgyMjQsImlzcyI6InB1Yi0xMDcxIiwic3ViIjoicG9zdC1yZWFjdGlvbiJ9.NXxhcbhxqHwL From] [[Week In Ethereum|Week in Ethereum]] (18-12-2021):
''"Gelato G-UNI Router [https://twitter.com/gelatonetwork/status/1469813838916866050 vulnerability], $26 million secured with no funds lost, alerted by [[samczsun]], revoke approvals given to vulnerable contract."''
''"Gelato G-UNI Router [https://twitter.com/gelatonetwork/status/1469813838916866050 vulnerability], $26 million secured with no funds lost, alerted by [[samczsun]], revoke approvals given to vulnerable contract."''
==Governance==
===Admin Keys===
===DAO===
===Treasury===
==Token==
===Launch===


== Governance ==
* Got first [https://forum.gelato.network/t/release-g-uni-as-separate-dao-from-gelato-rebrand-it-as-arrakis-finance/364 discussed] on 13-3-2022.
=== Admin Keys ===
=== DAO ===
 
* From their [https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e blog] (6-5-2021):
 
''"All [[token]] holders will be able to have a say in the future direction of the protocol via voting on proposals in the Gelato [[Decentralised Autonomous Organisation (DAO)|DAO]]. The goal is that in the long run, developers that use Gelato to automate their smart [[contracts]] functions will govern over the protocol in order to determine the “rules” by which the Executor bots that serve the network have to adhere by. Decisions include setting [[fees]] for Executors, deciding on developer incentive schemes, and enforcing that Executors always execute transactions in the best interest of the end-user."''
 
== Token ==
=== Launch ===
=== Token allocation ===
=== Utility ===
 
* [[Governance]], [[Proof-of-Stake (PoS)|staking]] & [[slashing]] ([https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e 6-5-2021])
 
=== Token Details ===
=== Stablecoin ===
== Coin Distribution ==
== Tech ==
 
* [[Whitepaper]] can be found [insert here].
* Code can be viewed [https://github.com/gelatodigital/gelato-network here] (11-7-2020).


=== Implementations ===
===Token Allocation===


* Built on: [[Ethereum]], and will [https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e expend] to [[Polygon (MATIC)|Polygon]], [[Binance|BSC]] 'and more' (6-5-2021).
* When [[Gelato Network (GEL)|Gelato]] spun out Arrakis, GEL holders got the short end of the deal, from a [[DeFi Prime]] [https://twitter.com/defiprime/status/1503485420545273856 thread] (15-3-2022):


* [https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):
''"And what $GEL token holders get is a meager 15% of a new tokens supply vested for 4(!) years when you lock $GEL in an [[airdrop]] [[Smart Contract (SC)|contract]] for a year!"''


''"The Gelato Network currently supports [[smart contracts]] on Ethereum, [[Polygon]] and [[Fantom (FTM)|Fantom]] and will add additional support for [[Binance]] Smart Chain, [[Arbitrum]], [[Optimism]] and [[Avalanche (AVAX)|Avalanche]].''
* [https://forum.gelato.network/t/release-g-uni-as-separate-dao-from-gelato-rebrand-it-as-arrakis-finance/364/36 From] the gov forum itself (15-3-2022):


=== How it works ===
''"22% to “Team and Investors”??''


* [https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):
''Who are the investors other than GEL holders who basically funded the development of G-UNI??"''


''"Gelato automates Ethereum smart contract operations by using what it calls “arbitrary logic” and bots. Its most prominent use [[case]] is addressing [[liquidity]] and volatility issues with cryptocurrency trading. The protocol can protect traders from severe losses by automatically rebalancing portfolios and executing trades on their behalf. Third-party servers and systems are required to monitor smart contracts and conditions for their execution. Gelato does away with the intermediaries by using a [[decentralized]] network of bots to carry out these operations, simplifying [[decentralized finance]] ([[Decentralized Finance (DeFi)|DeFi]]) for end-users."''
===Utility===


=== Fees ===
* From the gov forum [https://forum.gelato.network/t/release-g-uni-as-separate-dao-from-gelato-rebrand-it-as-arrakis-finance/364 announcement] (13-3-2022):
=== Upgrades ===


*[https://ethhub.substack.com/p/ethhub-weekly-162?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjozNTMxMjg5NSwiXyI6IkNDcGZjIiwiaWF0IjoxNjE4ODg2Mzg1LCJleHAiOjE2MTg4ODk5ODUsImlzcyI6InB1Yi0zOTEwIiwic3ViIjoicG9zdC1yZWFjdGlvbiJ9.exVvPyhMi1kDUFO3yV80-GzK2GBUopjGgbd4 From] [[EthHub]] (20-4-2021):
''"The $SPICE token will be a “vote escrowed” token, meaning that holders can bond it for up to 6 months to receive $xSPICE which provides them with voting rights, a share of the fees generated by all Arrakis vaults and a “boost” on further $SPICE emissions for also providing liquidity in Arrakis vaults. Crucially it is the job of the voters to help the protocol determine how inflating $SPICE supply is directed as incentives to the different tokenized Arrakis LP positions, as well as vote on other protocol related matters such as [[Whitelist|whitelisting]] managers/strategies (liquidity management strategies, be they fully automated or overseen manually by a manager entity, must be explicitly onboarded by the DAO)."''


''"[https://medium.com/gelato-network/introducing-gelato-v2-the-most-reliable-way-to-automate-your-ethereum-smart-contracts-73cd0010599e Gelato v2] is a major upgrade for the platform with features that make developers lives easier."''
===Other Details===
=== Staking ===
==Coin Distribution==
==Technology==
*[[Whitepaper]] or docs can be found [insert here].
*Code can be viewed [insert here].
*Built on: [[Uniswap (UNI)|Uniswap]] V3, deployed on [[Ethereum (ETH)|Ethereum]], [[Optimism (OP)|Optimism]] and [[Polygon (MATIC)|Polygon]] (10-2022).
===How it works===


* From their [https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e blog] (6-5-2021):
* From their [https://docs.arrakis.fi/arrakis-lp-vaults-v1 docs] (8-2022):


''"For Executor bots, in order to be able to participate in executing [[Transaction (Tx)|transactions]] in the Gelato Network and thus earning rewards from doing so, they will need to acquire & [[Proof-of-Stake (PoS)|stake]] $GEL. [[Staking]] will allow executors to [[earn]] the ability to reserve “slots’’ which give them the exclusive right to earn fees from executing transactions in a certain period of time.''
''"Vaults are [[Smart Contract (SC)|smart contracts]] which allow for projects or users to deposit funds, and vault managers to activate strategies on these vaults. This makes [[Uniswap (UNI)|Uniswap]]V3 as easy to use for projects and users as UniswapV2, no longer having to think about "where should I set my [[Liquidity Provider (LP)|LP]] range?".''


''Potentially [[slashing]] the [[stake]] of Executors bots will serve the purpose of disincentivizing bad behavior, such as censoring or [[Frontrunners|front running]] transactions, making such actions uneconomical. The Gelato DAO will have the power to enforce these decisions and the obligation to monitor the behavior of Executors. Executors will become more accountable for their actions which will enable us to further [[Decentralized|decentralize]] who can run these [[Nodes]] as well as providing some interesting future functionalities such as executing transactions based on [[Off Chain|off-chain]] conditions."''
''Vaults interact with 2 users:''


=== Interoperability ===
# ''Projects/Users-  that provide the [[liquidity]]''
=== Other Details ===
# ''Managers- Anyone can be a manager''
== Oracle Method ==
== Privacy Method ==
== Their Other Projects ==


=== Arrakis Finance (SPICE) ===
''When a project or user deposits funds into the Vault they receive LP tokens back which represent their share of the overall Vault LP position.''


* [https://newsletter.banklesshq.com/p/top-5-tokens-to-watch?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo1MjIyMDY0NywiXyI6ImR6bWdYIiwiaWF0IjoxNjUwMjUxMzc5LCJleHAiOjE2NTAyNTQ5NzksImlzcyI6InB1Yi0xNjAxNSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.ziMb6q-W3JpSxqcjY5Y5oBuYBgWW19cU4z4UbBUgidY&s=r From] [[Bankless DAO (BANK)|Bankless]] (15-4-2022):
''The manager account within the vault is completely [[permissionless]], anyone and everyone can be a manager, however the vault deployer has to specify who the manager should be. For any project that wants deep liquidity and does not want to manage the vaults themselves the full autonomous Bene Gesserit Strategy exists, which is the first strategy and strategy team that Arrakis has [[Whitelist|whitelisted]]."''


''"[https://arrakis.finance/ Arrakis] (formerly known as G-UNI) is a [[Uniswap (UNI)|Uniswap]] V3 [[liquidity]] management protocol. A recent spin-off of Gelato, a smart contract automation network, Arrakis solves several key pain points that come with providing liquidity to and building atop [[Uniswap]] V3.'' ''As experienced [[DeFi]] users will know, Uniswap V3 utilizes a concentrated liquidity model. Rather than do so across all price ranges, as is default with Uniswap v2, an LP on V3 can “concentrate” their liquidity by only providing it across select price ranges of their choosing. While this greatly improves capital efficiency, it substantially increases the [[difficulty]] of market making on the exchange, as it magnifies the risk of [[Impermanent Loss (IL)|impermanent loss]]. In addition, due to the differentiation in price ranges selected per [[liquidity provider]], V3 [[Liquidity Provider (LP)|LP]] [[tokens]] are represented by [[ERC721|ERC-721]] [[Non Fungible Tokens (NFTs)|NFTs]] rather than the more composable [[ERC20 tokens|ERC-20 tokens]].''
===Fees===
===Upgrades===
===Staking===
====Validator Stats====
===Liquidity Mining===
===Scaling===
===Interoperability===
===Other Details===
==Oracle Method==
==Their Other Projects==
==Roadmap==
*Can be found [Insert link here].
==Usage==


''Arrakis [https://docs.gelato.network/introduction/readme solves] this by providing the ability for protocols to access a suite of different automated strategies for providing liquidity for their token on V3.'' ''This includes the ability to provide over a “full range,” allowing LPs to get a similar experience and risk profile to doing so on Uniswap V2. Arrakis also enables increased composability by converting LP positions from ERC-721s into ERC-20s known as G-UNI tokens.'' ''In doing so, it increases the ease for other protocols to build on Uniswap V3, as ERC-20s are far more composable than their NFT counterpart. We’ve already seen this in effect, as users can [https://twitter.com/joey__santoro/status/1484268608041590788 borrow] against G-UNI tokens within Rari Capital’s [[Fuse]], allowing them to access increased capital efficiency along while simultaneously earning trading fees.''
* [https://thedefiant.io/arrakis-loses-mojo-as-user-pulls-300m-from-vault-provider From] [[The Defiant]] (14-10-2022):


''Arrakis has experienced significant adoption, with more than [https://defillama.com/protocol/arrakis-finance $465 million] in [[Total Value Locked (TVL)|TVL]] and counting protocols such as [[Frax Finance (FRAX)|Frax]], [[Fei Protocol (FEI)|Fei]] and [[Aave (AAVE)|Aave]] among their customers.''
''"A user removed around $300M from Arrakis Finance’s [[Maker DAO|DAI]]/[[US Dollar Coin (USDC)|USDC]] vault. The withdrawal reduced the pool’s [[Total Value Locked (TVL)|TVL]] by more than 40% from $800M."''


''Like [[Curve Finance (CRV)|CRV]], the protocol will utilize a vote-escrow model in which tokenholders can lock their SPICE to receive xSPICE. With xSPICE, holders will be entitled to cash [[flow]] from protocol revenue, 25% of fees earned from providing liquidity, the ability to vote on SPICE emissions that are allocated across different pools, as well as boosted rewards when LPing to said pools. Given this token design, the launch of SPICE could potentially kickstart “The Uniswap Wars,” which could see [[DAOs]] accumulate the token to build up liquidity on the exchange. Were that to be the case, it would also be prudent for investors to pay close attention to the Arrakis ecosystem to identify the “[[Convex (CVX)|Convex]],” i.e. the protocol that offers a liquid [[derivative]] of xSPICE."''
This started [https://twitter.com/_nikolajankovic/status/1580543983712772096 discussions] around how Arrakis' TVL is misrepresenting things, due to their x50 leverage.


== Roadmap ==
* From their [https://docs.arrakis.fi/arrakis docs] (8-2022):
* Can be found [Insert link here].


== Usage ==
''"As of this writing (21st May 2022), Arrakis has $745 million in [[Total Value Locked (TVL)|TVL]] in its [[Liquidity Provider (LP)|LP]] vaults — which comprises roughly 19% of Uniswap v3’s entire liquidity. This makes Arrakis the largest LP on Uniswap v3 by far, all without having any native [[Liquidity Mining|liquidity mining]] incentives."''


* Has been securing and automatically managing positions worth over [https://medium.com/gelato-network/announcing-the-gel-token-stewarding-gelato-into-a-sustainable-future-815c0ecedb8e $180M] (6-5-2021).
===Projects that use or built on it===
==Competition==
==Pros and Cons==
===Pros===
===Cons===


=== Projects that use or built on it ===
* When [[Gelato Network (GEL)|Gelato]] spun out Arrakis, GEL holders got the short end of the deal, from a [[DeFi Prime]] [https://twitter.com/defiprime/status/1503485420545273856 thread] (15-3-2022):


* [https://newsletter.banklesshq.com/p/top-5-tokens-to-watch?token=eyJ1c2VyX2lkIjoxMzk3OTAwLCJwb3N0X2lkIjo1MjIyMDY0NywiXyI6ImR6bWdYIiwiaWF0IjoxNjUwMjUxMzc5LCJleHAiOjE2NTAyNTQ5NzksImlzcyI6InB1Yi0xNjAxNSIsInN1YiI6InBvc3QtcmVhY3Rpb24ifQ.ziMb6q-W3JpSxqcjY5Y5oBuYBgWW19cU4z4UbBUgidY&s=r From] [[Bankless DAO (BANK)|Bankless]] (15-4-2022):
''"And what $GEL token holders get is a meager 15% of a new tokens supply vested for 4(!) years when you lock $GEL in an [[airdrop]] [[Smart Contract (SC)|contract]] for a year!"''
''"Arrakis has experienced significant adoption, with more than [https://defillama.com/protocol/arrakis-finance $465 million] in [[Total Value Locked (TVL)|TVL]] and counting protocols such as [[Frax Finance (FRAX)|Frax]], [[Fei Protocol (FEI)|Fei]] and [[Aave (AAVE)|Aave]] among their customers."''
*[https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):


''"The Gelato Network currently supports smart contracts on [[Ethereum (ETH)|Ethereum]], [[Polygon (MATIC)|Polygon]] and [[Fantom (FTM)|Fantom]] and will add additional support for [[Binance|Binance Smart Chain]], [[Arbitrum]], [[Optimism]] and [[Avalanche (AVAX)|Avalanche]]. Several projects are already using the system to automate contracts, including [[Maker DAO|MakerDAO]], [[InstaDapp (INST)|Instadapp]], [[B.Protocol (BPRO)|B Protocol]] and [[QuickSwap (QUICK)|QuickSwap]].''
Two days later [https://twitter.com/defiprime/status/1504160820824924162 following up] with:


''In June, Gelato [https://cointelegraph.com/news/gelato-network-launches-g-uni-uniswap-v3-management-token introduced] an automated liquidity manager for [[Uniswap (UNI)|Uniswap]] called G-UNI, which combined the capital efficiency of Uniswap v3 with the user experience of v2.''
''"Aha ha you probably should not delete discussion from [[Discord]] if you want to pretend that you are a community-driven project"''


''In August, Gelato [https://cointelegraph.com/news/smart-contract-automator-gelato-brings-liquidity-management-to-zerion integrated] with DeFi aggregator [[Zerion]] to improve liquidity management for its users. This enabled Zerion’s 200,000 or so active monthly users to have their Uniswap v3 positions managed automatically."''
==Team, Funding and Partners==
===Team===
*Full team can be found [here].
*Gelato [https://twitter.com/defiprime/status/1503485424810938368 spun out] Arrakis and their devs that worked on it.
===Funding===
===Partners===
==(:==
Knowledge empowers all and will help us get closer to the [[decentralised|decentralized]] world we all want to live in!


== Competition ==
Making these free wiki pages is fun but takes a lot of effort and time.
== Pros and Cons ==
=== Pros ===
=== Cons ===
== Team, Funding, Partners ==
=== Team ===
* Full team can be found [here].
*[[Hilmar Orth]]; co-founder
* Comes from [[Gnosis]].
=== Funding ===


* Got a [https://medium.com/metacartel/metacartel-2020-recap-1980524ad8da grant] in 2020 from [[MetaCartel DAO|MetaCartel]] (4-4-2021).
If you have enjoyed reading, tips are appreciated :) This will help us to [[keep]] expanding this archive of information.
*[https://cointelegraph.com/news/gelato-raises-11m-from-heavyweight-backers-for-web-3-automation From] [[CoinTelegraph|Cointelegraph]] (8-10-2021):


''"Gelato has raised $11 million in a Series A funding round led by [[Dragonfly Capital Partners|Dragonfly Capital]] and with participation from [[ParaFi Capital]], Nascent, [[IDEO|IDEO CoLab Ventures]] and [[Aave (AAVE)|Aave]] founder [[Stani Kulechov]]. The funds were raised through a closed-door token sale and will go toward onboarding more [[blockchains]] to the network and increasing its staff from the current team of 15."''
[[ETH]] tip [[address]]: 0x83460bE5F218b1520B69D702cE60A1DE37dD8E31
 
=== Partners ===
[[Category:Companies/Organisations]]

Latest revision as of 08:24, 1 November 2022

Built on Uniswap V3, Arrakis deploys automated liquidity management strategies.

Basics

History

  • From their docs (8-2022):

"In the current DEX environment there is a trade off in terms of ease-of-use and the efficiency. AMMs with a constant function market maker curve, meaning any AMM that only has 1 price curve such as UniswapV2 and their forks make the largest trade off in this section. These AMMs provide liquidity from a price of 0 to ∞ meaning that they are extremely capital inefficient since the price of an asset is neither close to 0, nor close to ∞. Due to this capital inefficiency it affects all the other components. It results in low liquidity depth, because the funds for liquidity are distributed equally throughout the whole price range, this of course makes there be a high amount of slippage. A high amount of slippage means that there is a lot of volatility, as well as means there is low amount of volume as people don't like trading something with high slippage.

Due to these factors we truly believe that a protocol like Arrakis is required that helps projects, make concentrated liquidity DEXs such as Uniswap V3 easier to use, furthermore making liquidity no longer be a topic that projects need to care about themselves. As a project matures, the liquidity profile should mature as well. Via automated liquidity optimisation we can make sure that a project gets what it needs in terms of liquidity at the moment in time.

Arrakis, previously known as G-UNI, set out to solve these issues in February 2021. Since that time, the protocol has demonstrated exceptional growth on every conceivable metric. As of this writing (21st May 2022), Arrakis has $745 million in TVL in its LP vaults — which comprises roughly 19% of Uniswap v3’s entire liquidity. This makes Arrakis the largest LP on Uniswap v3 by far, all without having any native liquidity mining incentives."

Audits & Exploits

  • Bug bounty program can be found [insert here].
  • Audits of V1 can be found here (8-2022)

Bugs/Exploits

"Gelato G-UNI Router vulnerability, $26 million secured with no funds lost, alerted by samczsun, revoke approvals given to vulnerable contract."

Governance

Admin Keys

DAO

Treasury

Token

Launch

Token Allocation

  • When Gelato spun out Arrakis, GEL holders got the short end of the deal, from a DeFi Prime thread (15-3-2022):

"And what $GEL token holders get is a meager 15% of a new tokens supply vested for 4(!) years when you lock $GEL in an airdrop contract for a year!"

  • From the gov forum itself (15-3-2022):

"22% to “Team and Investors”??

Who are the investors other than GEL holders who basically funded the development of G-UNI??"

Utility

"The $SPICE token will be a “vote escrowed” token, meaning that holders can bond it for up to 6 months to receive $xSPICE which provides them with voting rights, a share of the fees generated by all Arrakis vaults and a “boost” on further $SPICE emissions for also providing liquidity in Arrakis vaults. Crucially it is the job of the voters to help the protocol determine how inflating $SPICE supply is directed as incentives to the different tokenized Arrakis LP positions, as well as vote on other protocol related matters such as whitelisting managers/strategies (liquidity management strategies, be they fully automated or overseen manually by a manager entity, must be explicitly onboarded by the DAO)."

Other Details

Coin Distribution

Technology

How it works

  • From their docs (8-2022):

"Vaults are smart contracts which allow for projects or users to deposit funds, and vault managers to activate strategies on these vaults. This makes UniswapV3 as easy to use for projects and users as UniswapV2, no longer having to think about "where should I set my LP range?".

Vaults interact with 2 users:

  1. Projects/Users-  that provide the liquidity
  2. Managers- Anyone can be a manager

When a project or user deposits funds into the Vault they receive LP tokens back which represent their share of the overall Vault LP position.

The manager account within the vault is completely permissionless, anyone and everyone can be a manager, however the vault deployer has to specify who the manager should be. For any project that wants deep liquidity and does not want to manage the vaults themselves the full autonomous Bene Gesserit Strategy exists, which is the first strategy and strategy team that Arrakis has whitelisted."

Fees

Upgrades

Staking

Validator Stats

Liquidity Mining

Scaling

Interoperability

Other Details

Oracle Method

Their Other Projects

Roadmap

  • Can be found [Insert link here].

Usage

"A user removed around $300M from Arrakis Finance’s DAI/USDC vault. The withdrawal reduced the pool’s TVL by more than 40% from $800M."

This started discussions around how Arrakis' TVL is misrepresenting things, due to their x50 leverage.

  • From their docs (8-2022):

"As of this writing (21st May 2022), Arrakis has $745 million in TVL in its LP vaults — which comprises roughly 19% of Uniswap v3’s entire liquidity. This makes Arrakis the largest LP on Uniswap v3 by far, all without having any native liquidity mining incentives."

Projects that use or built on it

Competition

Pros and Cons

Pros

Cons

  • When Gelato spun out Arrakis, GEL holders got the short end of the deal, from a DeFi Prime thread (15-3-2022):

"And what $GEL token holders get is a meager 15% of a new tokens supply vested for 4(!) years when you lock $GEL in an airdrop contract for a year!"

Two days later following up with:

"Aha ha you probably should not delete discussion from Discord if you want to pretend that you are a community-driven project"

Team, Funding and Partners

Team

  • Full team can be found [here].
  • Gelato spun out Arrakis and their devs that worked on it.

Funding

Partners

(:

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