Summary of Uniswap A fast, efficient method for backtesting uniswap LP strategies

00:00:00 - 00:25:00

This video explains how to backtest uniswap LP strategies using Federico's Unisoft V3 simulator. The video also introduces the Unisop Grants Program, which funds teams working to improve the usability of governance tools and community initiatives.

• 00:00:00 This video explains how to backtest uniswap LP strategies using Federico's Unisoft V3 simulator. The video also introduces the Unisop Grants Program, which funds teams working to improve the usability of governance tools and community initiatives.
• 00:05:00 Uniswap is a fast, efficient method for backtesting uniswap LP strategies. The success of any units of bitter strategy depends on two fundamental elements- the first element is the impermanent loss, also called divergent loss, and the second element is the trading fees. Historical data can help us understand average returns and shape our positions. The amount of trades to be downloaded for a pool can be very high making this method slow and cumbersome. However, what if there is another way? Unisoft looked back to the unisoft v3 white paper to understand how the unisop smart contract works. Reading the documentation, they were able to see that for each pool, the contracts are tracking the total amount of fees that would have been earned by one unit of unbounded liquidity that was deposited when the pool was created. This method is fast enough to be run on screen without the need of downloading data locally and without the need to wait for time-consuming calculations.
• 00:10:00 Uniswap is a fast, efficient method for backtesting uniswap LP strategies. The white paper describes the mathematical details of the liquidity function, which determines the fees an LP provider can collect. Uniswap also calculates the liquidity of an unbound position, which allows for more detailed analysis of concentrated liquidity strategies. The presenter introduces some links for more information on liquidity theory and uniswap.
• 00:15:00 The Uniswap algorithm can be used to backtest uniswap LP strategies with high accuracy. The website allows users to select a strategy, enter investment details, and view results in real-time.
• 00:20:00 The presenter explains how Uniswap can be used as a backtest for uniswap LP strategies. Unison v2 pools are not supported by the methodology, but support is planned for future versions.
• 00:25:00 This video explains how to backtest uniswap strategies using the Uniswap framework. The tool allows you to backtest to any date range, and you can use the sub graph to query the date range you want.