Benefits of the Strategy

Uniswap v3 vs. Amphor USDC, ETH & BTC Vaults

In general, the synthetic LP IL-hedged vault replicates an LP position in Uniswap v3 between two bands while hedging both:

• the Impermanent Loss (IL) effect within the range (USDC, ETH & BTC Vaults)

• the directional exposure between BTC or ETH vs. USD within the range (USDC Vault only)

The receivable premium is determined in advance (fixed) and usually higher than a corresponding Uniswap v3 position over the same time period while the directional exposure (IL) withing the range is offset.

In addition to the payoff profile of the LP IL-hedged Vault, the ETH Vault also benefits from Ethereum’s native staking yield accrued from holding wstETH (yield-bearing asset).