It’s not unusual to run into ground-breaking ideas that promise to change our knowledge of finance in the quickly changing DeFi (Decentralized Finance) scene. Today, we’re delving further into Unipilot, a truly extraordinary invention, and its companion token, $PILOT.
Describe Unipilot.
By automating liquidity management, Unipilot is a ground-breaking technology that provides solutions to liquidity providers on Uniswap v3. This ground-breaking protocol aims to improve capital efficiency for liquidity providers by optimizing and rebalancing liquidity across various pricing points.
Why is Unipilot required for Uniswap v3?
The term “concentrated liquidity” was first used in Uniswap v3, a feature that enables liquidity providers to offer liquidity within a specified price range. While there are several benefits to this innovation, such as the potential for higher profits, it also poses a problem in that it must be ensured that the offered liquidity stays within the active price range.
If the price of the liquidity is outside the existing price range owing to market volatility, the liquidity provision is no longer profitable and no longer generates fees. In order to overcome this difficulty, Unipilot created a system that continuously assesses and rebalances liquidity within desirable price ranges, assuring steady fee income and improved capital efficiency.
The $PILOT Token’s Function
Within the Unipilot ecosystem, the $PILOT token performs the dual functions of a governance and utility token. The token’s unique form allows it to be backed by a variety of tokens, increasing its usefulness and potential value. Additionally, when Unipilot keeps releasing new features, the $PILOT token will get more functionality, building a stronger ecosystem for its owners.
What makes Unipilot unique?
The “Liquidity Optimizers” category of services, which includes Unipilot, was created to address the challenges of offering “in range” liquidity on Uniswap v3. While there are other new services that provide comparable functionality, such Visor Finance and Lixir Finance, Unipilot stands out with its distinctive solutions.
When liquidity ranges depart from the actual trading price, Unipilot’s “Concentration Incentive” function compensates holders of $PILOT tokens for activating the rebalancing process. The effective smart contract architecture of Unipilot, which aims to achieve optimal liquidity distribution, makes this possible.
Additionally, Unipilot has a “Index Fund” that provides a safe framework independent of external exchange trading. All acquired tokens are locked inside the fund, which expands as the protocol generates fees, unless $PILOT tokens are burnt to free them. This special process provides $PILOT a deflationary character and aids in maintaining the Index Fund as its benchmark for value.
What stores sell $PILOT?
Currently, $PILOT can only be traded on Uniswap against ETH, while there are future plans to add more trading pairings and exchanges.
Conclusion:
Platforms like Unipilot offer a lighthouse of automated, user-friendly solutions that can fundamentally change how we deal with decentralized exchanges in a DeFi world that is becoming more and more complex. It’s obvious that this is a development to monitor in the DeFi market as we see the $PILOT token and Unipilot platform continuing to develop and gain traction.
