What is Arrakis Finance?
Arrakis Finance is a trustless market-making protocol built on top of Uniswap V3. Arrakis’ vaults run sophisticated liquidity strategies for depositors in an automated and trustless manner.
Background
Arrakis Finance was initially part of the Gelato Network. However, due to the project’s success, the team spun Arrakis Finance into its standalone project.
How Does It Work
Arrakis Finance recently launched the V2 of their protocol, which includes numerous improvements to their older version. The protocol primarily allows LPs to deposit funds into private or public vaults. Both of these vault types can choose between three different management styles:
- Trustless: pre-defined on-chain strategies managed by smart contracts.
- Managed: operated by professional market makers.
- Self-Managed: managed by the individual in control of the vault.
Vaults then deposit the funds in a Uniswap V3 pool.
Arrakis also has a feature called PALM (Protocol Automated Liquidity Management). PALM is a liquidity bootstrapping mechanism that taps into Uniswap V3 volume and is the first product built on top of Arrakis V2.
Key Features
- Arrakis Finance is a trustless market-making protocol built on Uniswap V3 that runs automated liquidity strategies for depositors.
- It was initially part of the Gelato Network but became a standalone project due to its success.
- The protocol allows LPs to deposit funds into private or public vaults that can be managed in three ways: trustless, managed, or self-managed.
- Arrakis Finance features a liquidity bootstrapping mechanism called PALM that taps into Uniswap V3 volume.
