Position Managers

Making the most of concentrated liquidity models

What is a position manager?

A position manager is a type of vault where liquidity is managed on-chain. Position managers are strictly created based on Uniswap v3's AMM, as well as AMMs with similar mechanics.

How does Concentrated Liquidity work?

Concentrated Liquidity as an AMM functions very actively. Liquidity incentives are given to active liquidity providers, who must set at what price range their liquidity is used. The range goes from the minimum & maximum range at which the provider's liquidity is used when making a trade. To make the most out of liquidity, providers must manage their position.

How do Dyson's Position Managers work?

Dyson's vaults have on-chain calculators that manage the position of depositors' liquidity.

    Take TWAP (time-weighted average price)
    Get cumulative ticks from observation of the pool
    Calculate cumulative ticks based on the TWAP time
    Extract average tick in the pool based on the TWAP time
    Take the tick spacing of the pool (depends on pool type)
    Multiply it based on preset tick range multiplier 
    Calculate the floor of both lower & upper tick

The on-chain calculator sets a range & shifts the depositor's liquidity. There is a variable cushion, a tolerance level at which the calculator does another calculation and shifts ranges.

Which DEXes does Dyson have position managers for?

Dyson currently has position manager vaults for:

  • Uniswap v3, which are available on Polygon, Optimism & Arbitrum.

Unique mechanics to Dyson's Position Managers

Our position management solution grows in mechanics over time. To date, we have implemented the following:

  • Completely on-chain management

  • On-chain analytics, which are easily visible on our dApp

  • Low slippage rebalancing on 1inch, which lowers loss on rebalance drastically

How do I deposit into a position manager vault?

We recommend you check the tutorial section of the Dyson documentation.

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