Umami Finance Migrates To Uni v3 & Launches v3 Management Platform On Arbitrum

The future of decentralized trading on Arbitrum

Umami Finance is pleased to announce that it has redeployed its UMAMI-wETH LP to Uniswap v3 & is launching a new platform for migrating Arbitrum liquidity onto the capital-efficient DEX.

Starting Sunday, Feb 20., Umami’s UMAMI-wETH LP will be hosted on Uni v3. In the coming weeks, Umami will announce updates on ongoing partnership discussions to build & manage additional LPs on the DEX.

The Uni v3 migration greatly increases the capital efficiency of Umami’s primary LP, reduces slippage & gas fees for swappers, and generates significant new revenue for Umami’s treasury.

Meanwhile, Umami’s new platform for supporting Uni v3 migration on Arbitrum will enhance trading liquidity on the network & create a highly scalable new business line for Umami.

Maximized Capital Efficiency

Umami’s models show that the Uni v3 migration gives it the ability to increase the capital efficiency of its UMAMI-wETH LP by up to 4000x.

The increased efficiency has allowed Umami to unlock >$200,000 in ETH from its LP & reallocate it to new yield-generating deployments on Arbitrum. At the same time, it reduces slippage & gas fees on UMAMI<>wETH swaps, generating savings of up to 30% for swappers, according to Uni v3 data.

The new LP has also allowed Umami to remove >10,000 UMAMI tokens from circulation, increasing Treasury Value Per UMAMI for holders!

Improved Price Stability

Meanwhile, the Uni v3 LP will reduce price volatility for UMAMI & better align its trading price with underlying Treasury Value Per UMAMI.

By optimizing ETH liquidity allocations at key UMAMI price points, the Umami team will be able to actively promote a stable, appreciating trading price for UMAMI!

Enhanced Treasury Revenues

The more capital efficient UMAMI-wETH LP will also enhance Umami’s trading fee revenue, which will bolster its treasury APR & support higher monthly payouts to Marinators.

The team’s models show that the LP will generate >$100,000 annually in trading fees for the treasury.

Leading Liquidity Migration To Uni v3

Going forward, Umami will play a leading role in migrating Arbitrum liquidity to Uni v3 by launching a new platform for helping partner projects establish their own LPs on the DEX.

The Umami team believes Uni v3 concentrated liquidity is the future of decentralized trading for Arbitrum. However, for many projects, hyperactively managing Uni v3 liquidity poses challenges & can be a potential liability if mishandled.

By leveraging its protocol-owned liquidity & the expertise of its in-house v3 hyperactive manager, Steven-T, Umami will help partners seamlessly migrate to Uni v3.

The Umami team is in actively working with partners to deploy new Uni v3 LPs & will be dropping some exciting updates very soon!

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Sustainable, Risk-Hedged Arbitrum Yields