What is Poolshark? Poolshark is a Directed AMM (DAMM) that helps users execute strategies to minimize Impermanent Loss and earn profits from providing liquidity. Let’s find out what is special about this project with Weakhand in this article.
What is Poolshark?
Overview of Poolshark
Currently, leading AMM platforms like Uniswap continuously update and improve products with the launch of Uniswap V3 allowing users to provide liquidity within a price range, thereby helping to optimize liquidity and users earn more. more transaction fees. However, receiving more trading fees is often not enough to cover losses due to market fluctuations. Poolshark introduces the concept AMM Directional helps users earn profits from providing liquidity.
Poolshark is a platform Directional AMM (DAMM) aims to provide users with a better liquidity provision experience by supporting buy and hold strategies using pools on the platform.
What is the Poolshark Difference?
Currently, Poolshark offers 2 types of Pools:
Cover Pool: Used to insure or hedge a liquidity provider position.
For 1 Pool, there are 2 types of tokens: ETH and USDC. Normally with traditional AMMs, when the price of ETH increases, the amount of ETH decreases and the amount of USDC increases. However, with Cover Pool, the exact opposite is true, the amount of ETH increases due to using USDC to buy ETH and then the amount of USDC decreases, this helps LP earn profit from the increase in ETH to compensate for the expenses. Volatility loss (This loss is the result of the user’s LP position selling at an average price lower than the current market price).
Cover Pool use cases:
Case 1: Calculate the average for an LP position
For example: If Alice wants to buy ETH from 2000 to 2200 USDT and the current ETH price is 1500 USDT, Alice can set the lower limit to 2000 and the upper limit to 2200. Alice will start buying ETH when the price reaches 2000 USDT and stop when it exceeds over 2200 USDT.
Case 2: Prevent temporary loss
For example: If Alice has an LP ETH/DAI position on Uniswap v3 with a range of 1000 to 5000 and the current ETH price is 3000 DAI, Alice can set a lower limit of 3000 and an upper limit of 5000 to hedge against temporary losses .
Price Pool: Due to the two-way nature of LP in AMM, users are always exposed to risk on both sides of the price line. Therefore, with Price Pool users can provide liquidity in one direction.
For example: With the ETH/DAI token pair. Users can provide liquidity one way from ETH → DAI or from DAI → ETH.
Core Team
He is a programmer and has experience in writing Smart Contracts.
Zachary H : Business Development Lead
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He graduated with a bachelor’s degree in business administration from Wilfrid Laurier University.
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He has been working at Milton Youth Theater Production – a company specializing in planning and organizing summer camps for campers since July 2018.
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In March 2021, he moved to work Part Time at Lowe’s Canada as a Sales Associate.
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In April 2022, he decided to quit his job and join Poolshark as Business Development Lead.
Investor
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Tokenomics
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Poolshark Project Information Channel
- Website: https://www.poolshark.fi/
- Twitter: https://twitter.com/poolsharks_labs
- Medium: