Aloe Labs

develops decentralized capital allocation products on Ethereum

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As DeFi grows in efficiency and complexity, it becomes harder and harder for passive users to reap its benefits. At Aloe Labs, we're fighting against this and trying to ensure that everyone can still participate. For one thing, you shouldn't have to be an expert market-maker just to provide liquidity on Uniswap.

Our current products are a step towards this vision, and we have big plans for the future.

Aloe Active

Allocated UniV3 liquidity based on aggregated statistics from our price prediction market. Withdrawal only.

Aloe Blend

Allocates UniV3 liquidity across an infinitely wide range, but earns extra yield with idle assets.

Aloe Strategies

The most advanced solution yet. Idle assets earn yield, and market-makers stake $ALOE on strategy NFTs.

What is Aloe Blend?

Aloe Blend enables UniV3 LPs to earn extra yield on their positions without sacrificing a UniV2-style risk profile. Blend LP tokens are designed to be drop in replacements for their V2 counterparts: same IL and volatility characteristics, but more productive assets.

The mechanism here is simple: Blend uses the same density as a 0→∞ position, but only allocates liquidity over a finite range. This is made possible by UniV3's concentrated liquidity features.

The Blend vaults have been deployed for 2 weeks now, and so far they've outperformed all other UniV3 liquidity managers.

Optimized Inventory Ratio
A constant 50/50 inventory ratio helps limit IL.
Incentivized Rebalances
Blend is designed to stay in-the-money regardless of market conditions.
Top-tier performance
After two weeks on mainnet, Blend has outperformed all other UniV3 liquidity managers.

FAQ

What is Aloe Blend?

Aloe Blend is a collection of vaults that hold users' funds and execute Uniswap V3 strategies. Each vault corresponds to a trading pair on Uniswap V3. The strategies are designed to have a risk profile that's similar to Uniswap V2, but they earn higher yield.

What vaults are currently available?

There are currently two vaults. One is built on the 1% OHM-ETH pair with integrations for staking OHM and depositing ETH to Rari's Fuse Pool 18. The other is built on the 0.05% USDC-ETH pair with integrations for depositing both assets to Compound.

How has it been performing?

For USDC-ETH, we have a Dune Analytics dashboard here. Data for OHM-ETH isn't yet available on Dune, but we took a snapshot of performance two weeks after launch. You can find that here -- APY for this period was around 11000%

What plans do we have for Aloe Blend?

Soon we'll be building out single-sided liquidity functionality, deploying Blend to Arbitrum, and adding more vaults for more trading pairs. Aloe Blend will also be part of our liquidity mining program once the DAO launches.

What will the $ALOE token be used for?

$ALOE is part of the Aloe Protocol and will allow users to vote in the DAO and stake on strategies. Ownership of $ALOE does not imply any ownership, control, or authority over Aloe Labs, Inc. Similarly, $ALOE does not give holders any part of protocol (or protocol-derived) revenue.

How will the $ALOE token be distributed?

We plan to distribute the majority of $ALOE through liquidity mining. Some will also be retained by the team, and some will be given to early supporters.

What will the DAO have control over?

The DAO will set strategy parameters for Aloe Blend and select which silos to use. For example, on the USDC-ETH pair, the DAO could decide to deposit idle funds to Compound, Fuse, Yearn, or any other compatible service.

What is Aloe Strategies?

Aloe Strategies is our next-gen liquidity management solution. Strategy NFTs will define parameters for Uniswap positions (i.e. width, target inventory ratio, liquidity density function, and more). Strategists stake $ALOE on NFTs that they expect will perform well, and if they're correct their stake increases. This allows the protocol to crowdsource the optimal strategy for each vault without handing over direct control of funds to unknown actors.

Will Aloe Strategies work alongside Aloe Blend?

Yes. For example, Class 0 strategy NFTs may define all parameters required by a Blend vault. Class 1 NFTs may define a more complex set of parameters that allow for high concentrations of liquidity, and all classes can be optimized via crowdsourcing. Even if higher class strategies start outperforming Aloe Blend, Blend has the benefit of a well-understood risk profile and IL characteristics.

Who can be a strategist?

Anyone can express their opinions on strategies by staking $ALOE. We plan to provide retail-friendly UI access to stake on popular strategies. That said, strategy creation will likely be a more involved activity.

When will Aloe Strategies launch?

Right now we're focused on launching a DAO to govern Blend vaults. Aloe Strategies will come afterwards.