Thread by @Odysseus0x

While we're working on finalizing our docs, we would like to take a moment to write about what exactly we are building on $METIS and how we aim to enhance the model of #DeFi's concentrated liquidity AMM! 🌿

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1/ Concentrated liquidity AMMs are a new primitive of the AMM model built by Uniswap in their third iteration of their protocol, Uniswap V3.

This new primitive is built around concentrating liquidity in a specific price range to extract higher fees than traditional AMMs.

2/ This model works excellently when earning high yields on naked LPs as fees are concentrated towards that specific price range.

Odysseus takes this a step further with fees compounding into an infinite range and NFT based yield farming that rewards active ranges!

3/ Autocompounding fees

One of the innovations Odysseus offers over Uniswap V3 is autocompounding trading fees.

Instead of fees being claimable in a naked token, Odysseus puts them into a reinvestment token that invests the tokens at an infinite range, offering higher earnings.

4/ This in turn creates a higher incentive to provide liquidity as the returns of holding the plain LP will be significantly higher than the likes of Uniswap V3 or other AMMs thanks to this key feature.

Another unique feature of Odysseus is also our yield farming.

5/ Something that Uniswap V3 did not continue was the liquidity mining that they did during the launch of $UNI where they temporarily offered $UNI incentives to liquidity providers.

While Uniswap V3 wrote a contract for liquidity mining using NFTs, it never came into fruition.

6/ Odysseus aims to be different, offering liquidity incentives for providing concentrated liquidity.

Through our farms, you can deposit a liquidity NFT at any range, so long as it matches the target swap fee of the farm.

7/ Now of of course, you may be asking the following question: "If Odysseus supports any range, couldn't I just supply at any range and farm risk/IL free?". And we have your answer:

Odysseus liquidity mining is built on efficiency, ensuring liquidity is active and net positive.

8/ To prevent freeloading liquidity on Odysseus, we have a farming system where only concentrated liquidity that is currently in range earns $ODD rewards.

This means that any out of range positions cannot be deployed to farm all rewards and freeload off of incentives.

9/ This system also incentivizes proper game theory and strategy through incentivizing in-range and active liquidity.

The more you are in range, the higher your APR.

This has been some alpha on our upcoming #DeFi product on #Metis. More will be coming in the near future through our docs which we are working on getting out soon.

Can't wait to see yall then! 🌿