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What Is Unipilot (PILOT)?
Unipilot automates liquidity optimization and management for liquidity providers on Uniswap. Its goal is to maximize capital efficiency by allocating the right amount of capital to each liquidity pool. Unipilot solves the challenge of keeping liquidity in the active price range to earn consistent fees. It achieves this by allocating capital to the narrowest price range to maximize fee earnings. Additionally, Unipilot auto-rebalances liquidity to adapt to changing market prices and covers the transaction costs involved in readjusting liquidity.
Universal Liquidity Optimization
Uniswap v3 introduced the concept of 'Concentrated liquidity' in the AMM ecosystem. Unipilot's protocol is designed to be compatible with other AMMs that adopt concentrated liquidity mechanisms in the future.
The PILOT Token
- The PILOT token is a governance/utility token.
- It can be backed by hundreds of tokens.
- As new features are implemented, it will gain further utility within the Pilot protocol.
What Makes Unipilot Unique?
Unipilot, along with Visor Finance and Lixir Finance, emerged as front runners in the liquidity optimization sector. Unipilot addresses the complexities of providing 'in range' liquidity on Uniswap v3 while maximizing profitability.
Providing and managing liquidity
All three services, including Unipilot, allow users to deposit liquidity into an optimized Vault/Pool, generating an NFT that represents their share of the pool.
Optimizing Liquidity price ranges
To earn fees, liquidity must be within the right price range. Unipilot utilizes its smart contract architecture to achieve the best optimization. Users are rewarded with $PILOT tokens for calling the readjustment function when liquidity ranges deviate from the trading price.
Support from the Index Fund
Unipilot's protocol is self-sustaining and not reliant on external exchange trading. Protocol earnings are transferred to the Index Fund, which grows and retains its value. Tokens accumulated in the Index Fund are locked unless $PILOT tokens are burned to release them, making the PILOT token deflationary.
Where Can I Buy a Unipilot (PILOT)?
PILOT is currently available for trading on Uniswap against ETH, with more pairs and exchanges to be added in the future.
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Answers
What Is Unipilot (PILOT)?
Unipilot automates liquidity optimization and management, saving liquidity providers from manual oversight. It aims to maximize capital efficiency by allocating the right mix of capital to each of Uniswaps liquidity pools on its platform. Concentrated liquidity is a challenge as it needs to stay in the active price range to consistently earn fees through trades. Unipilot solves this problem by allocating capital to the narrowest price range to maximize fee earnings. It also auto-rebalances liquidity in appropriate price ranges to cater to changing market prices, while disbursing the transaction cost involved in readjusting liquidity.
What Makes Unipilot Unique?
Unipilot is one of the three front runners in the market of liquidity optimizers for Uniswap v3's concentrated liquidity feature. It addresses the complexities of providing 'in range' liquidity while maximizing profits. The other two services in this sector are Visor Finance and Lixir Finance. Each of these services offers unique features and benefits to users.
Where Can I Buy a Unipilot (PILOT)?
PILOT can be traded on Uniswap against ETH. More pairs and exchanges may be added in the future.
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