Gyroscope founder: How does Gyroscope dynamic liquidity pool outperform traditional pools?

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On July 22, Gyroscope co-founder Ariah Klages-Mundt pointed out that high trading volume ≠ high LP yield. Gyroscope's dynamic liquidity pool, with its efficient capital utilization and intelligent pricing mechanism, can achieve a sustainable and relatively high native pool APR. In contrast, some trading pools like Uniswap/Aerodrome generate high trading volume through "spread", but such high annual yields mask arbitrage losses and do not truly bring real yield to LPs. As Dune data - Markouts PnL is a key indicator measuring real yield, the chart shows that the ETH/USDC trading pair in Gyroscope's dynamic liquidity pool has a yield far higher than other trading pools.

Currently, many LPs are struggling to maintain break-even in Uni/Aero pools, while using Gyroscope's dynamic liquidity pool (Dynamic E-CLP) mode can easily obtain more robust returns in a passive state.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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