Solution

A trustless market making infrastructure protocol that enables running sophisticated algorithmic strategies on Uniswap V3.

The Solution - Arrakis

Arrakis is a trustless market making infrastructure protocol that enables running sophisticated algorithmic strategies on Uniswap V3. Liquidity providers can utilize Arrakis Vaults to have their liquidity be managed in an automated, capital efficient, non-custodial and transparent manner.

Who can use Arrakis?

1. Liquidity Providers (LPs)

Arrakis is a protocol that is built for liquidity providers that are either regular retail LPs, institutional funds or web3 protocols themselves to enjoy actively managed concentrated liquidity on Uniswap v3. LPs retain full custody over their funds and can withdraw at anytime.

They can select three different options that define how their liquidity gets managed:

1. Trustless Vaults: Vaults that have a smart contract with a pre-defined strategy as their manager, which enable LPs to have trustless, autonomously managed on-chain strategies, similar to a Curve v2 like model. These could be static or dynamic.

2. Managed Vaults: Vaults that are operated by professional market makers running more sophisticated off-chain strategies.

3. Self Managed Vaults: Vaults that can only be used by single entities which are also the manager at the same time and thus have full control over it. Only for advanced users.

2. Professional Market Makers (Managers)

The other possibility exists for market makers and sophisticated traders that can offer to manage the liquidity of other LPs in return for a % share of their fee earnings.

All of this occurs on-chain, meaning that protocols can monitor how these market making strategies are performing transparently.