Gamma Strategies focuses on active liquidity management and market-making strategies. Its services aim to maximize capital efficiency, reduce the cost of emissions, and maintain consistent in-range liquidity with low price impact in the decentralized finance (DeFi) and Web3 ecosystems.
Introducing concentrated liquidity via custom price ranges in platforms like Uniswap V3 improved the capital efficiency for LPs but also introduced complexities and risks, such as impermanent loss. Impermanent loss occurs when the price of assets deposited in a liquidity pool changes relative to when the LP initially deposited them, leading to potential losses when withdrawing their positions.
Gamma Strategies offers a solution through non-custodial, automated, and concentrated liquidity management services. It operates as an active liquidity management (ALM) program, actively adjusting liquidity parameters for LPs to maximize profitability and minimize impermanent loss.
GAMMA is the native token of the Gamma ecosystem. GAMMA holders can stake their tokens in Gamma’s vaults and earn fees instead of directly using them to provide Gamma Protocol liquidity.
