A Delicious Sorbetto Fragola Overview!
Dear Isvikingers, it is with great pleasure that we announce to you that Sorbetto Fragola is finally here!
It has been a long two months, but here we are!
First of all, what do we mean by Sorbetto?
Despite being a really delicious Italian dessert, here at Popsicle, when we talk about Sorbetto we are currently referring to two different products: Sorbetto Fragola and Sorbetto Limone. They both help Liquidity Providers to maximize their trading fee gains and passive income, using different Decentralized Exchanges (DEXs).
On both versions of Sorbetto, you will be able to deposit your tokens, which will then be used to provide liquidity to pairs on various DEXs. As stated above, while providing Liquidity, users gain trading fees. While Sorbetto Limone is still being developed, Fragola is now live on our website!
Sorbetto Fragola is the first flavor of Sorbetto that will be launched. It has been designed especially for Uniswap v3. Simply speaking, Uniswap v3 allows LPs to select their preferred price ranges. Obviously, as a user, you want your funds to always be in the most traded utilization zone to earn the most trading fees so they are more profitable. To read more about Concentrated Liquidity and how it works please refer to this article.
So what does Sorbetto Fragola do and how can a user interact with it?Sorbetto Fragola provides liquidity and optimizes the price range it is in, based on the historic volatility. This strategy is optimized for trading fee yield, meaning that IL is a user’s consideration.
Let’s use the ETH/USDT Sorbetto liquidity pool as an example.
The user flow is as follows.
- The user should choose one of the following two options:
a) Provide ETH and USDT in the exact percentage amounts that the PLP range is currently in. If the pool is at a 70/30 ratio then the user will put 70% ETH and 30% USDT.
b) Swap his way into the Sorbetto liquidity pool with either USDT or ETH alone. The protocol then swaps for the exact percentage amounts of the current pool ratio.
- The user then receives Popsicle Liquidity Pool (PLP) tokens, that are equivalent to the share of the pool owned. The PLP tokens are just like any other LP tokens, meaning that they can be staked or used for incentivization programs.
NOTE: PLPs are not NFTs.
- Fragola runs its strategy, as per the parameters decided by the strategists.
- When the user wants to remove their funds they will receive tokens at the current pool ratio. For example, if the ETH/USDT pool is currently a 60/40, then the user will receive 60% ETH and 40% USDT
- When the user claims fees, 10% is first subtracted and put to the Popsicle Treasury as a Performance Fee to be delivered to nICE holders. Then the remaining 90% is sent to the user.
You can find a detailed tutorial on how to use Fragola on our Wiki here.
The rebalancing currently runs only on one strategy, we will however be looking at making new strategies as well as working with anyone interested in collaborating or making a strategy for Sorbetto Fragola.
The actual execution of the rebalance will be done via the governance multisigners. Read more about them here.
Bear in mind that as of right now Fragola is only available on Ethereum, as it interacts with Uniswap v3 technology. If the technology becomes available on other chains, then Fragola may be deployed Fragola there as well.
The Benefit to the Sorbetto Fragola Liquidity Providers!
- Gas fees are optimized. Fragola rebalances all users funds in a single transaction removing the need for individuals to do so themselves.
- Capital is more efficient. Fragola rebalances funds so that capital is always within the range being trading.
- User monitoring is reduced. Fragola automates a lot of the process allowing the users to monitor their positions less frequently.