The UniswapV3 algorithm is ideal for efficient and inexpensive trading of volatile tokens. It balances the needs for traders and liquidity providers by enabling efficient price discovery, but this exposes users to amplified impermanent loss. DefiEdge allows users to deposit assets in managed strategies. They can explore all managed strategies, the UniV3 pool it deals with, and the historical performance by going to the ‘Dashboard’. If they like a particular strategy they can deposit their liquidity in that strategy.
DE-Shares are issued based on the proportion of liquidity that a liquidity provider (LP) has deposited into a strategy.
Shares in a strategy are issued in the form of ERC20 tokens. These tokens can potentially be traded on a decentralized exchange like Sushiswap/Uniswap. Having their positions represented as ERC20 tokens enables liquidity providers to use their investments as collateral. Thereby allowing liquidity providers to mine more liquidity and increase or diversify their exposure if they wish to do so.