Universe Finance Review: Maximize your Uniswap V3 Returns

In the crypto market, when every investing entity wants to earn a passive income on their holdings, the liquidity management platform comes in handy. However, some of the biggest issues that they have are high risk, hedging, and high fees. By providing solutions to these issues, Universe Finance seems to have the potential of growing in the market.

What is Universe Finance?

Universe Finance is a Uniswap V3- based active liquidity management platform that focuses on risk ranking and quantitative strategies. While tackling high-risk and high-cost issues, Universe Finance enables its users to maximize their income on Uniswap to build a non-stop yield platform with the highest and most stable real return rate across the DeFi market.

Universe Finance Token (UNT)

Universe Finance Token (UNT) is the native utility token of Universe Finance that would have a variety of applications. The project aims to launch the token in three to six months of the launch.

Tokenomics

The token’s total supply is 1,000,000,000 (1 billion), with a token accuracy of 18. Here is the complete tokenomics and token distribution:

Universe Finance Tokenomics

Token Distribution

Universe Finance Token Distribution

What products does it offer?

Universe Finance offers a wide range of products to meet the requirements of LPs with varied risk appetites. Here are the key products that it offers:

• Uniswap V3 Backtesting Platform
• Uniswap V3 Active LP Quantitative Management Strategy
• Uniswap V3 Smart Vault
• Uniswap V3 Private Vault
• Uniswap V3 Hedging Vault (Developing)
• Uniswap V3 Leveraged Vault (Designing)

Products

What makes Universe Finance unique?

Universe Finance works as a complete package for its users with the following amazing features:

1. High return: Universe Finance offers the highest true return rate of ETH-USD LP in the past few months.
2. Stable income: The users enjoy low retracement and high Sharpe ratio after extreme market tests along with continuously earning fee income.
3. Low cost: Universe Finance users have the freedom to rebalance and reinvest without paying the expensive gas fees.
4. Risk grading: The risk grading management systems can meet the requirements of different LPs.
5. Simple: Easy-to-use interface and automatic balancing, automatic reinvesting, and automatic income tracking make users’ lives so much simpler.

Universe VS Yearn

Universe Finance has several benefits over the Yearn Finance, which is considered a liquidity management benchmark. Here are some primary differences between the two:

1. Universe Finance is built for Uniswap V3, while Yearn Finance focuses on Curve Finance.
2. The products of Universe can meet different demands of users with different risk appetites. ‌
3. Universe maximizes the LP returns through quantitative strategies. ‌
4. Universe Finance users can open long/short LP positions earning both trading profit and LP profit.

Existing challenges

The most notable improvement of Uniswap V3 is its capacity to acquire liquidity within selected limits, allowing it to create several times the earnings of V2. Although it produces large yields, it also poses a number of difficulties to LPs:

1. High-risk: While centralized liquidity can increase income by improving capital efficiency, it also magnifies the impact of temporary loss, particularly when the price is out of range. Once this occurs, the impermanent loss may continue to grow as the income falls to zero.
2. High cost: Rebalancing and reinvesting are required for income sustainability and stability, but both require consumers to pay significant Gas fees. The gas fee will squander all of the fee revenue for regular users.
3. Rebalancing: If the price deviates, it may face the risk of abnormality if it is not balanced, as well as the risk of losing net value once the price returns to normal. The time and parameters of Rebalancing are two complicated quantitative issues.
4. Reinvestment: V3 involves manual reinvestment of fee income, as opposed to automated reinvestment on V2. For most LPs, these problems are extremely difficult.
5. Hedging: Uniswap LP must offer dual currency investing opportunities (e.g., ETH-USDC) to its users.

How Universe Finance solves these issues?

Here are some of the unique solutions Universe Finance brings to the above-mentioned problems:

Universe backtesting Platform

Universe Backtesting is the first LP revenue backtesting system on Uniswap V3 with accurate on-chain data, granularity of block-level backtesting, flexible self-defined parameters, and robust strategy analysis indicators. It can help users understand the benefits and the risks of Uniswap V3 LP easier and customize the LP strategies.

Universe Active LP Management Quantitative Strategy

The project creates a multifactor quantitative financial model based on the core premise of Uniswap V3. After a lot of data backtesting and optimizing, it eventually came up with a strategy model with a constant income. 

Universe Smart Vault

Each smart vault is supported by a unique intelligent quantitative strategy. The strategy contract dynamically adjusts the liquidity position of LPs under the direction of the strategy signal, allowing users to receive fee income.

Universe Private Vault

Multiple technical approaches have increased the security of private vaults. The private vaults use a flexible delivery method to fully meet the user’s security requirements in terms of service.

Universe Finance Advantages

Universe Hedge vault

Users can lend money to build market-neutral hedging LP positions with the hedging vault, producing higher fee income and offsetting the price risk of hazardous assets in the positions.

Universe Leveraged Vault

Users can build long or short trading LP positions based on market appraisal and make high mining income by depositing in the leveraged vault. Trading LP positions carry a higher risk of liquidation.

Roadmap

Universe Finance Roadmap

Conclusion

With the mission to maximize its users’ liquidity income on Uniswap and build a one-stop yield platform with the most stable actual rate returns across the whole DeFi market, Universe Finance seems a promising liquidity management platform.

You can read more reviews by TheCoinRise here.