As active liquidity providers ourselves we see the problems LPs face and we see the way how they can be resolved. And because we like the technology behind NEAR, we decided to contribute to the growth of the NEAR ecosystem by building an innovation that we've had in mind for a while already.
What it does
Crisp is what we call a Structured Liquidity protocol and it combines three components:
- Concentrated Liquidity DEX
- Structured Products
- Leveraged Liquidity
Brought together these tools enable liquidity providers to generate more profits and hedge their risks, making liquidity provision in general more attractive to capital holders and eventually benefiting the whole DeFi industry, NEAR being the core platform for this.
How we built it
So far we have built a concentrated liquidity DEX, which is the first component of our solution. We used Uniswap V3 and Orca Whirlpools as a reference for the logic and wrote the whole system on NEAR from scratch, first building the smart contracts, tests and then the frontend.
Challenges we ran into
The first challenge was that we started a bit late and only had 6 weeks to implement the solution. When we carefully analysed the math and logic of concentrated liquidity AMMs in existing protocols, the second challenge for us was to figure out how to implement it within the NEAR architecture, because it differs quite a lot from the blockchains that already have concentrated liquidity AMMs. We solved it successfully and after covering the code with plenty of tests we were certain that we are on our way to delivering a great working product. Probably we overdedicated our time to the tests, because then we had very little time for the frontend, so the third challenge was to get the UI working smoothly and correctly by the finish date. We succeeded.
Accomplishments that we're proud of
We are proud of delivering a fully functioning product that is the first component of our solution. We actually managed to accomplish even more than we expected, such as liquidity incentives and NFTs as a token of ownership of a liquidity position.
What we learned
We learned the math behind concentrated liquidity AMM on a new level. We learned to start working on the frontend sooner rather than later. And we learned that we have great team members working really well together to build complex solutions quickly.
What's next for Crisp.Exchange
Our next steps are:
- Win this hackathon :)
- Improve the UI, add visualization of the liquidity, APR estimation, etc.
- Add multi-hop swap routing.
- Implement a lending protocol that accepts Crisp liquidity position NFTs as collateral with liquidation mechanisms in place.
- Build Leveraged Liquidity.
- Create Keepers and provide them as a service for the users to protect them against liquidations.
- Integrate the usage of derivatives as a hedge of the volatility risks.
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