Unipilot | Income Sharks AMA recap
On 30 March we held an AMA in Income Shark’s Discord channel. Missed it or want to read it again? We got you!
Why is Unipilot needed?
Taha: Let’s talk about some numbers for Unipilot and why it’s needed most right now. Our team member Anas did some number crunching on Uniswap, and the findings were very bullish
You can see in the following image that $211m out of $919m is out of range on Uniswap v3 and earning no fees at all. On some pairs over 40% of the liquidity is out of range and earning nothing. This extreme capital inefficiency not only leads to zero fees for the LP but also doesn’t allow for efficient, low-slippage trading. This is exactly what Unipilot fixes.
Secondly, we backtested our v2 strategy on past market data and its working really well. As you can see below, Unipilot is earning you up to 3x or more fees vs. Uniswap.
Over 50% of LPs on Uniswap v3 are in negative returns, the strategy that we built for the protocol accounts for IL too. It’s profitable even after IL, on Unipilot.
What’s in store for Unipilot v2?
Taha: One thing that I’m personally really excited about are interest-free self-paying loans.
Let’s say you are providing $50,000 of liquidity on a protocol such as Uniswap. You are earning good yield but your capital is essentially locked. What if you want to keep earning returns but also need money to spend today, perhaps on another investment?
This is where interest free loans come in. We are currently working on building a protocol where with one click you can use your LP to get loans which will automatically repay itself over time via the liquidity fees you earn.
It also opens up the possibility of leveraging your capital. For example, if you are providing liquidity of $50,000 and then you take out a loan of $25,000 and use that to provide liquidity again. This will enable you to earn 150% of the fees. How cool is that!
The market for loans is huge and bigger than CLM. Because you can include Uniswap v2, Uniswap v3, Sushiswap, Pancakeswap, Quickswap, essentially the majority of DEXs that exist today.
Any partnerships aligned in coming months?
David: Oh yes! We will be announcing our first partnership on Unipilot v2 early next week!! And we will also be looking to ramp up our partnership process very soon, making it easier for projects to find us, understand us, and partner!
Can you go over the token utility please?
David: So the fees generated by the Unipilot protocol go into the Index Fund. It’s currently worth over $1m. This is with our fees cut of 20% being off for over three months. The only way to access the contents of the index fund is to burn your $PILOT tokens. This means the $PILOT token is essentially your claim to the protocol’s fees, and the $PILOT token should become deflationary eventually. More info is available here: https://unipilot.medium.com/the-pilot-index-fund-cf3099657f27
When will you add support for L2 solutions?
David: We will be prioritizing adding support for L2 solutions right after v2 launches, so expect them to arrive within the next month
And what about marketing any plans?
David: Absolutely. Marketing has been a little on hold while we finished building v2 and everything that comes with it such as a new website. I’m keen to get us a claimdrop (airdrop) program up and running targeting Uniswap v3 LPs and requiring them to migrate liquidity to Unipilot before they can claim their airdrop — similar to DYDX’s claimdrop last year that required the user to use the platform before claiming.
A referral program would also be great. Perhaps the referrer would earn a share of the fees earned for the Index Fund by the referee. This could create a huge growth loop. The idea of KPIs for the community was also raised recently and this sounds promising. Once v2 has launched tomorrow, the team as a whole will have the time needed to look into all these initiatives properly.
What are the new features of farming unipilot v2 is offering?
Mubashir: So the Unipilot farming basically allows LPs to earn $PILOT rewards for locking their LP tokens, apart from that this farming with v2 update also enables dual mining, through which LPs can farm their liquidity and earn rewards in $PILOT *and* a second token. We have a dual mining partnership lined up with this launch which we’ll announce soon.
What is your association with Xord, and also tell us more about Xord?
David: Great question. So we are an independent team but we are in the Xord ecosystem. This allows us to pull on their resources as and when needed. They have an ecosystem that includes for example designers (websites, videos) and auditing (BlockApex).
Taha: I also want to mention that there is resource scarcity in the Blockchain industry. Being associated with Xord means that we have an abundance of resources available that really helps us to move at an incredible pace.
Can we see on-chain governance in pilot?
Taha: Yes, voting will start soon on snapshot.page with the first being on tokenomics.
What are your plans w.r.t different chain are we going to see PILOT on multi-chain?
Taha: Yes, PILOT will be multi chain. Although supply is going to be the same, so bridging.
What are you excited about?
Taha: One thing that is really important that I want to mention is our transformation to ULIM (Universal Liquidity Investment Manager). We are building a complete liquidity ecosystem around Unipilot. This might be called Pilot Labs, which will have several liquidity products.
1. Concentrated liquidity manager (Current protocol)
2. Self-repaying loans.
In a nutshell, this is what is next for Unipilot after v2. (in no specific order)
1. Layer 2 deployments.
2. Transformation to ULIM. (possibly rebrand to Pilot Labs)
3. Range orders on Uniswap v3.
4. Bonding with liquidity.
5. Self-repaying loans. (over $20bn market)
6. Possible claimdrop to attract LPs.
Alot of things we are still researching and planning for Unipilot beside these, the future is bullish for Unipilot. Our internal goal is to lock $500M in TVL for this year, which is a moonshot but something that excites us
Could you please provide an example/description of bonding within the ULIM and how one would benefit from engaging with it?
Taha: In short, the goal is to lock TVL in the protocol. On some pairs (the good ones), if the user is exiting liquidity we can offer to purchase it and give some premium on it. As long as we offset that premium the inflation will be healthy, we ran some tests on it and we will share the proposal with numbers really soon with the community.