Go Back
- Date
Concentrated Liquidity Gets Optimized With Sushi & Steer partnership
Learn about CL & Sushi's partnership with Steer
- Oishii
Sushi brings increased capital efficiency to concentrated liquidity via its investment in Steer Protocol, a recently launched revolutionary liquidity optimization protocol that Sushi invested in back in 2021.
Sushi’s investment into Steer in 2021 laid the groundwork for its partnership to revolutionize liquidity management in the newly released Sushi Concentrated Liquidity Pools by offering everyone an effortless, automated LPing experience.
Steer’s best-in-class liquidity engine breaks down the barrier between liquidity and smart algorithms to seamlessly automate position management.
By providing a marketplace for LP strategies and the option to create and deploy custom strategies, Steer enables Sushi concentrated liquidity users a highly desirable experience compared to its concentrated liquidity and V3 counterparts.
Furthermore, with Steer, Sushi users get optimized functionality that streamlines the setup of various multi-position vaults that are otherwise difficult to achieve elsewhere.
As a result, Steer and Sushi make sophisticated liquidity management accessible to everyone, increasing developer participation and innovation.
Steer Optimizes Sushi’s Concentrated Liquidity (CL) Pools
Advanced Automated Position Management with Sushi V3 and Steer
Steer allows for multiple positions within a single market-making strategy vault, allowing liquidity providers to allocate capital more efficiently. Steer is the first to develop multi-position liquidity, which enables deep capital efficiency for Sushi’s concentrated liquidity product.
Bootstrap Liquidity Through Incentivized Vaults
Secondly, Steer Protocol offers a versatile platform for web3 protocols to establish incentivized vaults for their tokens. Steer enables projects to bootstrap liquidity via market-making strategies, leading to more efficient markets and enhanced liquidity for traders on Sushi. Anyone can create a strategy, and with support for over 10+ programming languages, developers have the flexibility to devise high-quality market-making strategies. In addition, developers earn a 5% performance fee on all strategies they create and deploy. Similarly, a protocol or a DAO can incentivize a strategy through staking. Incentivized vaults are particularly beneficial for protocols with limited liquidity and increased trade slippage, as they encourage others to provide liquidity and improve the liquidity depth. Several protocols utilize this approach for token launches through an LBP.
Optimize Strategies Before Deployment Through Backtesting
Next, with its proprietary protocol backtesting platform, Steer allows builders to test their market-making strategies thoroughly and optimize them before deploying live, reducing risk and improving performance. Additionally, users can backtest strategies within their browsers to determine the risk profile before deploying capital. Finally, Steer Protocol is the only platform with a complete development platform built on concentrated liquidity.
Steer plans to enable swap strategies soon after launch. This feature will allow developers to build and deploy swap strategies, focusing primarily on traders while providing the ability to increase the APY of their assets by using complex trading strategies vs. HODL.
DCA Strategy
Steer Protocol's off-chain compute protocol and data connectors allow developers to build applications and execute off-chain logic for on-chain execution, reducing gas costs and improving scalability. For example, one of the applications available at launch is a DCA (dollar cost averaging) strategy allowing users to make reoccurring purchases of tokens over time.
ℹ️ About Steer Protocol
Steer Finance offers cross-chain automated strategies with secure on-chain execution. Users can create, run, and join automated liquidity provisions and trading strategies on any blockchain. In addition, the platform provides a venue to list, join, and incentivize published strategies. The Steer Protocol network automates strategy updates off-chain and applies them securely via a network of nodes. Build strategies with different programming languages and run them in various environments. Steer Finance aims to be the preferred provider of on-chain strategies with incentives for miners and strategists.
☑️ Great, How Do I Get Started?
Soon any user that creates a Concentrated Liquidity Pool will be able to select strategies Steer provides from Sushi’s easy-to-use UI. We will release a walk-through article to guide you through these steps.
Please subscribe to our Twitter, join our Discord, and get notified when these features go live!
👩🏻💻 Interested In Building On Sushi’s Concentrated Liquidity Pools?
We encourage all Liquidity Optimizers and Position Managers to build on Sushi’s Concentrated Liquidity Pools; as the codebase is universal, there is no need for any code changes.
Please refer to our:
Sushi is building a comprehensive DeFi ecosystem! Follow our socials to keep up with our product launches and find out more on how you can make the most of your cryptocurrency assets with Sushi’s secure and powerful DeFi tools!
Exchange | Furo | Docs | Discord | Twitter | Telegram | Newsletter | YouTube | Github