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Gyroscope Founder: How Does Gyroscope Dynamic Liquidity Pool Outperform Traditional Pools?
Summary: In a recent post, Gyroscope co-founder Ariah Klages-Mundt pointed out that high trading volume does not necessarily equal high LP returns. Gyroscope's dynamic liquidity pool, with its efficient capital utilization and intelligent pricing mechanism, can achieve sustainable and relatively high native pool APR (annual percentage rate). In contrast, some trading pools like Uniswap/Aerodrome, while generating ...
In a recent post, Gyroscope co-founder Ariah Klages-Mundt pointed out that high trading volume does not necessarily equal high LP returns. Gyroscope's dynamic liquidity pool, with its efficient capital utilization and intelligent pricing mechanism, can achieve sustainable and relatively high native pool APR (annual percentage rate). In contrast, some trading pools like Uniswap/Aerodrome, while generating high trading volume through slippage, mask arbitrage losses with high trading APR and do not actually bring real profits to LPs. Metrics like Dune Data - Markouts PnL are key indicators of LP's actual returns, as shown in the ETH/USDC trading pair, where Gyroscope's dynamic liquidity pool's returns are significantly higher than other trading pools.
Currently, many LPs are struggling to maintain a balance in Uni/Aero pools, while using Gyroscope's dynamic liquidity pool (Dynamic E-CLP) model can easily achieve more stable returns passively.
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