RainbowPool

Inspiration

Uniswap creator, Hayden, mentioned during the CalHacks 8.0 kickoff that he felt some of the best features in Uniswap v3 were being under-utilized. We wanted to find out if there was something in this space we could work on.

While reading up about v3 and the v3 Oracle in particular, we experimented with the Uniswap interface for pooling. The advanced options for concentrated liquidity pooling are pretty impressive - but we felt there was more to be done to take advantage of the opportunities created by this difference between v2 and v3.

This paper by Neuder et al. gave us some implementation-specific inspiration.

What it does (and will do)

RainbowPool builds upon the existing Uniswap router to give LPs access to safe and cost-efficient implementations of strategic liquidity provision - like splitting liquidity provision over bins with different ranges and executing smart re-balancing.

The decentralized app we implemented this weekend allows liquidity providers to interface with our liquidity optimization smart contract. It is a web3.0 application that acts as a proof of concept for our product.

We plan on integrating Uniswap v3 Router to facilitate transactions across liquidity pools on the mainnet. Uniswap v3 Oracle will provide data for our optimization algorithms so that we can do things like automatically re-provision liquidity.

How we built it

We used the existing scaffold-eth framework to facilitate rapid-prototyping and iteration of a user interface linked to a smart contract.

We deployed contracts on a local chain created using Hardhat.

Challenges we ran into

When trying to integrate Uniswap v3 into our environment we ran into problems related to Solidity complier versioning. This (disappointingly) stopped us from interacting with the Uniswap Router and Liquidity Management functionality directly.

What we learned

This hackathon was - for our team - an introduction to the dapp developement space. None of us had deployed chains locally or programmed in Solidity before this event.