Ariah Klages-Mundt@aklamun
With Uniswap’s UNIfication fee switch now on, my thoughts on how it will fare: the best performing passive pools will be key to sustained protocol profitability without driving LPs away.
Active LPs (what current Uniswap pools cater toward) are price-sensitive and mobile. Their performance depends mostly on their own active strategy and not the pool itself, and will find protocol fees much less justified. When their margins are squeezed too much, they will move to a different platform or pools (and there are several at this point).
In comparison, passive LPs are less fee sensitive because the pool is doing a lot more of the work (replacing the active strategy), and it takes a well-designed pool to perform well. It’s a difficult area to crack, to make a passive pool that meets the yield-to-risk requirements of passive LPs. Most protocols today do this poorly, and most passive LPs don’t perform well unless subsidized.
@GyroStable is well positioned for this with Dynamic CLPs already proven as one of the most performant passive pool types.