Charm FinanceCharm is coming to Berachain !
Charm is integrating with Kodiak to bring easy-to-use liquidity management tools to Berachain, leveraging proof-of-liquidity as the core mechanism. *This article was co-written by Charm and Kodiak.About CharmCharm is the easiest way to provide and manage liquidity, and the only way to create fully permissionless LP vaults (‘Charm Vaults’). The vaults automatically manage liquidity to earn yields for liquidity providers, and to create deep liquidity for any token on a DEX. Charm created Alpha ...
Charm FinanceMedallion: A competition platform to increase LP yields
The problemMost liquidity providers (LPs) are not profitable. They lose over 20% a year to arbitrageurs, resulting in losses exceeding $500 million each year. The LP losses are known as loss-versus-rebalancing (LVR). Reducing LVR will recover the losses, and LPs will earn higher yields. LVR reduction is one of the most important unsolved problems in crypto. In a world with less LVR, on-chain liquidity will be substantially improved, and the user experience on DEXs can be at least as good as C...
Charm FinanceCharm has landed on Katana !
Charm has landed on Katana to bring higher yields and deeper liquidity for LPs and token creators. A customized version of Charm is now supporting all components of the Katana flywheel.About CharmCharm is the easiest way to provide and manage liquidity, and the only way to create fully permissionless LP vaults (‘Charm Vaults’). The vault automatically manages liquidity to earn higher yields for liquidity providers, and create deeper liquidity for any token on a DEX. Charm created Alpha Vaults...
The easiest way to provide and manage liquidity
Charm FinanceCharm is coming to Berachain !
Charm is integrating with Kodiak to bring easy-to-use liquidity management tools to Berachain, leveraging proof-of-liquidity as the core mechanism. *This article was co-written by Charm and Kodiak.About CharmCharm is the easiest way to provide and manage liquidity, and the only way to create fully permissionless LP vaults (‘Charm Vaults’). The vaults automatically manage liquidity to earn yields for liquidity providers, and to create deep liquidity for any token on a DEX. Charm created Alpha ...
Charm FinanceMedallion: A competition platform to increase LP yields
The problemMost liquidity providers (LPs) are not profitable. They lose over 20% a year to arbitrageurs, resulting in losses exceeding $500 million each year. The LP losses are known as loss-versus-rebalancing (LVR). Reducing LVR will recover the losses, and LPs will earn higher yields. LVR reduction is one of the most important unsolved problems in crypto. In a world with less LVR, on-chain liquidity will be substantially improved, and the user experience on DEXs can be at least as good as C...
Charm FinanceCharm has landed on Katana !
Charm has landed on Katana to bring higher yields and deeper liquidity for LPs and token creators. A customized version of Charm is now supporting all components of the Katana flywheel.About CharmCharm is the easiest way to provide and manage liquidity, and the only way to create fully permissionless LP vaults (‘Charm Vaults’). The vault automatically manages liquidity to earn higher yields for liquidity providers, and create deeper liquidity for any token on a DEX. Charm created Alpha Vaults...
The easiest way to provide and manage liquidity
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There are no reliable, user-friendly simulators for Liquidity Provision (LP) strategies. As a result, liquidity providers cannot assess the effectiveness of an LP strategy, or determine whether a vault utilising such strategies will perform well.
Charm Simulator is a permissionless and easy-to-use simulator to backtest the performance of an LP strategy. It works for any Uniswap v3 pool*, and any strategy supported by Alpha Vaults. Anyone can use Charm Simulator to test the performance of a vault before it is created.
*The first version of Charm Simulator will support Mainnet pools. L2 pools will be supported in future versions.
1. Click on Backtest, and select the pool to backtest:
2. Enter the strategy’s parameters using the tooltip as guidance. The docs contain further guidance.
3. Select the dates to backtest:
4. Click Run Backtest to run the simulator:
5. Repeat steps 2 to 4 until the best performing LP strategy have been found.
6. Click Create Vault to implement the strategy:
7. Click Create Vault again to open up your browser wallet to create a vault:
8. Follow the prompts in your browser wallet to create the vault.
9. When the transaction confirms, a welcome screen will appear to confirm the vault was created:
10. Click Next Steps to learn some of the things you can do with your vault.
11. Click View Your Vault to see your vault — it’s now ready to accept deposits!:
12. You can now deposit into the vault, and automate rebalance to let the vault run by itself.
Congratulations! You just created a vault with your own custom LP strategy!
Charm Simulator uses the following assumptions:
The protocol fee is set to 1% of Uniswap fees, and manager fee is set to 0%.
The first deposit is always in a 50:50 ratio.
There is only one depositor, and no withdrawals.
All the vault’s liquidity is in a Uniswap V3 pool at all times.
The strategy always rebalances at exactly the time determined by the Rebalance Frequency.
Charm Simulator offers a way to backtest an LP strategy using historical data. It should only be used for research purposes because:
It does not guarantee future performance, because it only uses historical data.
The actual performance also depend on the pattern of withdrawal and deposits, the manager fee, and what other liquidity managers do in response to an LP strategy.
It will not implement the strategy unless a vault is created.
The simulator uses the raw swaps data downloaded from Uniswap V3. They have not been pre-processed to filter out spurious swaps, or unusual liquidity patterns. These factors are more likely to affect smaller pools, and the simulator results for these pools may be less accurate.
Charm Simulator is a permissionless backtester for LP strategies. Anyone can use it to test an LP strategy, and then implement it for any Mainnet pool. Future versions of Charm Simulator will support L2 pools, and faster load time for all pools.
The content of this post is provided for informational purposes only. Nothing herein constitutes investment, legal, or tax advice or recommendations. Nothing on this site should be relied upon as a basis for making an investment decision, nor should they be used to guarantee performance. It should not be assumed that any investment in the asset class described herein will be profitable and there can be no assurance that future events and market factors would lead to results similar to any historical results described.
There are no reliable, user-friendly simulators for Liquidity Provision (LP) strategies. As a result, liquidity providers cannot assess the effectiveness of an LP strategy, or determine whether a vault utilising such strategies will perform well.
Charm Simulator is a permissionless and easy-to-use simulator to backtest the performance of an LP strategy. It works for any Uniswap v3 pool*, and any strategy supported by Alpha Vaults. Anyone can use Charm Simulator to test the performance of a vault before it is created.
*The first version of Charm Simulator will support Mainnet pools. L2 pools will be supported in future versions.
1. Click on Backtest, and select the pool to backtest:
2. Enter the strategy’s parameters using the tooltip as guidance. The docs contain further guidance.
3. Select the dates to backtest:
4. Click Run Backtest to run the simulator:
5. Repeat steps 2 to 4 until the best performing LP strategy have been found.
6. Click Create Vault to implement the strategy:
7. Click Create Vault again to open up your browser wallet to create a vault:
8. Follow the prompts in your browser wallet to create the vault.
9. When the transaction confirms, a welcome screen will appear to confirm the vault was created:
10. Click Next Steps to learn some of the things you can do with your vault.
11. Click View Your Vault to see your vault — it’s now ready to accept deposits!:
12. You can now deposit into the vault, and automate rebalance to let the vault run by itself.
Congratulations! You just created a vault with your own custom LP strategy!
Charm Simulator uses the following assumptions:
The protocol fee is set to 1% of Uniswap fees, and manager fee is set to 0%.
The first deposit is always in a 50:50 ratio.
There is only one depositor, and no withdrawals.
All the vault’s liquidity is in a Uniswap V3 pool at all times.
The strategy always rebalances at exactly the time determined by the Rebalance Frequency.
Charm Simulator offers a way to backtest an LP strategy using historical data. It should only be used for research purposes because:
It does not guarantee future performance, because it only uses historical data.
The actual performance also depend on the pattern of withdrawal and deposits, the manager fee, and what other liquidity managers do in response to an LP strategy.
It will not implement the strategy unless a vault is created.
The simulator uses the raw swaps data downloaded from Uniswap V3. They have not been pre-processed to filter out spurious swaps, or unusual liquidity patterns. These factors are more likely to affect smaller pools, and the simulator results for these pools may be less accurate.
Charm Simulator is a permissionless backtester for LP strategies. Anyone can use it to test an LP strategy, and then implement it for any Mainnet pool. Future versions of Charm Simulator will support L2 pools, and faster load time for all pools.
The content of this post is provided for informational purposes only. Nothing herein constitutes investment, legal, or tax advice or recommendations. Nothing on this site should be relied upon as a basis for making an investment decision, nor should they be used to guarantee performance. It should not be assumed that any investment in the asset class described herein will be profitable and there can be no assurance that future events and market factors would lead to results similar to any historical results described.
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