UniSwap V3 introduced a new feature of concentrated liquidity pools. These pools allow liquidity providers to concentrate their liquidity in a desired range for optimal utilization of their liquidity and earn higher fees as well. But all this flexibility comes with a lot of pain! In order for liquidity providers to ensure that their positions remain within the trading range, they have to actively manage their positions. In the event that someone forgets to maintain their liquidity positions in the trade range, their liquidity will be sitting idle and they will lose the fees they earned by providing liquidity. Due to this active management requirement, many small players will be forced to leave Uniswap, since they are unable to keep track and manage their liquidity positions.
It was Gamma Labs that recognized this issue and developed a protocol that offers active liquidity management without having to worry about babysitting their positions. Gamma uses hypervisors, which are upgradable contracts, to automatically track the trading range and adjust liquidity accordingly. For anyone who does not wish to actively manage their liquidity yourself on Uniswap V3, Gamma Hypervisor is a lifesaver!
Let us check out the top 10 Gamma Hypervisor Liquidity Pools in this post. As of writing this post, WETH-USDC sits at the top position with $328 millions of liquidity provided through Gamma Hypervisors. WBTC-WETH and WETH-USDT takes the second and third spots with $259 millions and $140 millions of liquidity respectively.
If we look at the number of liquidity providers who provided liquidity through Gamma Hypervisor pools, WETH-USDT ranks at the top with 473 liquidity providers since its inception. The second spot is taken by WETH-USDC with 329 liquidity providers and the third place is taken by TRU-WETH pool with 297 liquidity providers. But wait! What is TRU-WETH? May be time to google and find out what is TRU coin is all about!
This chart shows popular of liquidity pools among the liquidity providers on weekly basis. As you notice in the chart, for the past couple of weeks FLOAT-WETH is attracting new liquidity providers.