It’s update time, and we’re excited to share where we are and where we’re heading.
🌎 Where We Stand
The Brokkr journey took us from THORChain to Terra, and even through a rocky patch with Avalanche. Each step, with its bumps and turns, has been a learning curve, helping us grow. Despite the shifts and shakes, we’re still here, still building.
👥 Team and Treasure
From 19, we’re now a team of 8, steering a solid treasury of $1.5M, which gives us a runway for 20+ months. We’re putting unused funds into BTC, RUNE, and a few other bluechips to ensure we stay strong and stable for the adventures ahead.
DCA, yield strategies, and indexes are up and rolling, and accessible through our freshly released SDK. And we will continue iterating, ensuring Brokkr becomes the go-to DeFi asset manager.
🌟 Next Up: V3 Liquidity Management Strategies
We’ve been deep-diving into V3 pools and their tricky concentrated liquidity mechanics. After lots of testing and tinkering on the Arbitrum ETH-USDC 0,05% pool, our algo-LP strategies are confidently beating HODL on various time frames — from a week to a year and a half!
HODL (continuously keeping a 50:50 of both tokens) is the most frequently used metric to check how well LP performs. It clearly shows the effects of impermanent/divergence loss eroding profits.
A quick tip: Don’t get too attached to V3’s high APRs, as that’s a slippery slope. We tested a strategy that delivered 800% APR but was -80% in absolute value. Narrow ranges and frequent rebalancing quickly makes impermanent loss a permanent loss.
Uniswap is also piecing together V4 pools, which will pair concentrated liquidity with some nifty advanced pool features. Then having efficient and profitable LPing will be super key, and that’s what we are after — removing the fear of providing liquidity and making it profitable.
Testing testing testing
- We are testing 7 strategies, and 6 more are in the pipeline
✦ Mostly testing Arbitrum ETH-USDC pool but started with volatile and Ethereum pools as well
✦ Various timeframes
- Backtesting performance
✦ The latest strategies outperform HODL by 20%
✦ Backtesting vs. Livetesting on 45 days shows 0.1% difference
More testing is needed, but the results are exciting, and we can already make the V3 pools composable. If dApps want to integrate V3 pools, they need to manage the positions, and without any automation, the only option is an infinite range which is not optimal.
🚀 What’s in the pipeline
- Kickoff LP Strategies
- Market movement strategies
✦ These strategies will create an instrument that will sit somewhere between trading and LPing.
✦ It will let users LP in the direction of their market expectations without the need to set the exact price point (like betting on a price movement)
✦ Users will get the benefit of LPing and the market movement — the effect of impermanent loss will be minimal
- Rebuilding Delta Neutral Strategy
✦ We can reuse the DNS setup we had for V2 pools
✦ It could make V3 LPing neutral to price movements by removing volatility from one of the assets
- Chatting with LPs and with the community to build a better product
- Sharpening Strategies to increase the performance and LP experience
- Exploring further chains, DEXes, and partnerships
In the next chapters, expect a new look for our app and website, a launch of the LP strategies, an intro to our new tokenomics plan (aimed for a November rollout), and we’ll keep hunting for more cool partnerships with wallets and asset managers.
- Fresh look for App & Website
- LP strategies launch
- Tokenomics rework
- More integrations