Much more than a Visor Reactor!
C.o.R.E.2 (the second Collateralization of Reactors Event) is well under way and is set to end on November 16th at 3 PM EST. For those who are unfamiliar with this event, it’s where holders of TOKE are able to vote on Reactors of their choice. The top 5 Reactors with the most votes will be part of the next cohort of Tokemak Reactors for liquidity direction. As an added incentive, Visor Finance is offering $100,000 in VISR rewards to those who vote for the VISR reactor on Tokemak.
How does a reactor work?
These Reactors are a key part of Tokemak’s ecosystem, where liquidity providers deposit a project’s token into a Reactor in exchange for yield in the form of TOKE.
To illustrate an example, an XYZ holder would stake the base asset, XYZ, into the XYZ Reactor and receive tXYZ along with his or her share of TOKE rewards, currently set at 700 TOKE per day. When Tokemak begins its liquidity direction, TOKE holders can stake TOKE to the XYZ reactor in order to have governance power in deciding where the staked XYZ gets provided as liquidity. For example, a TOKE holder can stake TOKE to the XYZ Reactor to have a say in directing the staked XYZ to the XYZ-USDC Uniswap v3 pool. The XYZ staked to the Reactor would be paired with USDC from Tokemak’s pool of assets, and provided on liquidity venues.
Why is having a Tokemak Reactor important for Visor?
Having a Reactor would be the next step in the protocol-to-protocol relationship between Visor Finance and Tokemak. We believe that this relationship with Tokemak is particularly symbiotic because of our shared goal of creating deep, sustainable liquidity for DeFi projects. Connecting our respective communities earlier on through having a Reactor would lay the seeds for a fruitful and mutually beneficial relationship with Tokemak liquidity direction complemented by Visor position management.
How are Tokemak & Visor synergistic?
Visor was created for a very specific purpose: to manage liquidity positions on Uniswap v3 for both DeFi LP’s and DeFi projects using state-of-the-art strategies developed by our research organization, Gamma Strategies. We focus on liquidity management through Uniswap v3 because its capital efficiency allows LP’s to generate higher returns and allows DeFi projects to obtain deeper liquidity and less slippage with less upfront capital requirements.
Through Tokemak TOKE holders direct liquidity to specific liquidity venues in order to deepen liquidity for DeFi projects while also providing optimal returns to Tokemak’s protocol controlled assets (“PCA”).
Achieving high returns on its PCA is conducive to Tokemak’s goal of achieving singularity, the point at which Tokemak would be a fully sustainable ecosystem without the need for emissions of new TOKE.
We envision Visor as a venue where Tokemak’s Liquidity Directors can direct and select a ratio of assets for the managed position on Uniswap v3.
Visor is focused on management and strategies of Uniswap v3 LP positions because it is the most capital efficient, decentralized exchange in DeFi. However, providing liquidity in Uniswap v3 requires active management because it involves the discretionary provision of liquidity within a concentrated price ranges, which can provide outsized returns and deepen liquidity with less capital than Uniswap v2 or Sushi, if done properly.
By being a conduit to Uniswap v3, Visor can further the goals of Tokemak by not only adding value to its PCA but further cementing Tokemak as the liquidity network of choice for projects that want to get the most value out their directed liquidity.
Gamma Strategies, the research entity created by Visor, provides tremendous value to the new liquidity paradigm community by being solely dedicated to top-of-the-line research strategies on liquidity provisioning.
Gamma’s research focuses on machine learning algorithms, hedging, and impermanent loss mitigation, all of which would benefit the Tokemak community through higher returns on the directed and provided liquidity.
With over $20M in TVL we are already managing liquidity for many DeFi projects that will have Tokemak reactors: TracerDAO, Liquity, and mStable among several others. And this week will be kicking off liquidity management for Float Protocol, Fei Protocol and Index Coop’s treasuries.
We are offering $100,000 in VISR distributed to TOKE voters as both a show of good will to the Tokemak community and to create common stakeholders within the new liquidity paradigm. We appreciate your votes and look forward to further exploring the synergies between our protocols!
Vote for the VISR reactor here: https://www.tokemak.xyz/core
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