How To Automate Uniswap v3 Pools — Aperture Finance

Learn how to automate Uniswap v3 Concentrated Liquidity Pools to obtain a higher APR and collect more fees for your Uniswap v3 Position.

During the Uniswap v2 era, providing liquidity was a breeze; just pair two assets, and voila, sit back while the LP generates passive income for you. However, with Uniswap v3 and Concentrated Liquidity stepping in, the passivity in liquidity providing has reduced. Though full-range liquidity is still an option in v3, the prevalent practice of concentrating liquidity can lead to a lower APR.

Aperture Finance is a composable automation tool and a partner of BuildrMetrics!

Let’s take a look at Aperture Finance and break down how you can make your Uniswap v3 LPs more passive!

Stay tuned until the end to learn more about the Aperture Finance airdrop!

Composable Automation

Aperture Finance offers something completely different from all other Uniswap v3 CLP automation platforms. That’s Composable Automation.

This means that you still have control over your Uniswap v3 positions, you can set custom triggers for rebalancing, set custom triggers for compounding fees, and so much more!

Platforms like Gamma and Arrakis simply rebalance your position based on an Algorithm.

However, an algorithm can’t factor in fundamentals or market stance. That’s where Aperture succeeds. The best part is, that it’s all done through a simple interface, with no coding required.

Rebalance Triggers

Aperture Finance Uniswap v3 Automation Platform

The above screenshot shows an example of a rebalance trigger. You have 3 options for triggering your rebalance:

  • Price: Rebalance when the price of one of the assets in your pool hits your desired rebalance price.
  • Ratio: Rebalance when the ratio of the assets in your pool hits your desired rebalance ratio.
  • Time: Rebalance after a specific amount of days.

Additionally, you can add a time buffer, this is perfect for when there are big spikes for an asset, but retracements shortly after.

Example: Rebalance when ETH reaches a price of $1,850 and stays at $1,850 for 16 hours.

After you select your trigger, you’ll select your new desired price range. This takes the sweat out of constantly having to manage your positions! Aperture does it exactly how you want it for you with no fees!

Lastly, you can set a Gas Ceiling, which is the maximum amount of gas fees you’re willing to pay (if the gas is above your gas ceiling the trigger won’t execute). You can also decide if you want Aperture to reinvest your fees when the position is rebalanced.

Automated Position Closure

Aperture Finance Uniswap v3 Automation Platform
Aperture Finance Uniswap v3 Automation Platform

The above screenshot shows an example of a position closure trigger. This uses the same triggers as the automated rebalance system, including Price, Ratio, and Time.

The main difference here is that instead of your position being rebalanced, your position will be automatically closed.

This is perfect if you’re looking to get out of a position before you lock in too much impermanent loss.

Automated Compound

Aperture Finance Uniswap v3 Automation Platform
Aperture Finance Uniswap v3 Automation Platform

The above screenshot shows an example of the Auto-Compound feature within Aperture Finance. This will essentially collect your unclaimed fees and reinvest them back into your position.

It allows you to set the minimum fees in order for a compound trigger to be executed. You have to option to do this by dollar value, or by percentage of your overall position. It also allows you to set the maximum gas fee you’re willing to pay.

Let’s Talk Security!

Aperture Finance has a unique smart contract that allows you to retain access to your Uniswap v3 Position, and actually hold it in your wallet while still using these automations.

Here’s how the system works:

  • If Aperture Finance takes the position out of your wallet (to rebalance or close the position), it must return an equal value position or equal value of assets.
  • If it does not meet this criteria, the transaction will fail.

That means if an exploiter were to get ahold of the smart contracts (which is highly unlikely), the worst they would be able to do is rebalance a position a million times until the assets reach $0 (which comes at no benefit to the exploiter).

Aperture Finance Airdrop!

Aperture Finance will be doing an airdrop for Aperture token in Q1 of 2024. They will airdrop 1% of the total Aperture token supply (which equates to 10,000,000 tokens) to users that are active in the Private Beta.

Users will be eligible to receive up to 66,666 Aperture tokens, which is worth around $10k (based on their last valuation)!

Aperture Finance Private Beta Application
Aperture Finance Private Beta Application

If you wish to gain access to the Aperture Finance Private Beta so you can participate in this airdrop, sign up for the Private Beta waitlist.

In Step 2, you MUST answer “Yes” that someone referred you, and in Step 3, you MUST answer “BuildrMetrics” for the first name of the person/company that referred you. That way we can put in a word for you to bump the line!

That Wraps It Up!

Our team has been viciously using Aperture Finance and we’ve had some amazing results so far. We invite you to join our free community so you can learn more about some of the liquidity pools we have been investing in!

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