Sorbetto
Our Favourite Flavour!
What is Sorbetto?
Despite being a really delicious Italian dessert, here at Popsicle, when we talk about Sorbetto we are currently referring to two different products: Sorbetto Fragola and Sorbetto Limone. They both help Liquidity Providers to maximize their trading fee gains and passive income, using different Decentralized Exchanges (DEXs). On both versions of Sorbetto, you will be able to deposit your tokens, which will then be used to provide liquidity to pairs on various DEXs. As stated above, while providing Liquidity, users gain trading fees. Let’s now dive into both of them!
Sorbetto Fragola
Sorbetto Fragola has been designed especially for Uniswap v3. Simply speaking, Uniswap v3 allows LPs to select their preferred price ranges. As a user, you want your funds to always be in the most traded utilization zone to earn the most trading fees so they are more profitable. To read more about Concentrated Liquidity and how it works please refer to this article. Simply put Sorbetto Fragola provides liquidity and optimises the price range it is in, based on the historic volatility. This strategy is optimised for trading fee yield, meaning that Impermanent Loss (IL) is a user’s consideration. Read a step-by-step guide on how to use Fragola in the next section of this wiki! Bear in mind that users will be able to interact with Fragola using either our Light Version or our Pro Version!
Let’s use the ETH/USDT Sorbetto liquidity pool as an example.
The user flow is as follows.
The user should choose one of the following options: a) Provide ETH and USDT in the exact percentage amounts that the PLP range is currently in. If the pool is at a 70/30 ratio then the user will put 70% ETH and 30% USDT. b) Zaps his way into the Sorbetto liquidity pool with either USDT or ETH alone. Fragola then swaps for the exact percentage amounts of the current pool ratio and then joins Sorbetto (all in one transaction!
c) Joining Fragola using any tokens he wants. Fragola will swap that token for the pool's assets in the exact amount an it will join the position! (Bear in mind that zapping in has a cost, and that for large sums this could be pretty high!)
The user then receives Popsicle Liquidity Provision (PLP) tokens, that are equivalent to the share of the pool owned. The PLP tokens are just like any other LP tokens, meaning that they can be staked or used for incentivization programs. NOTE: PLPs are not NFTs.
Fragola runs its strategy, as per the parameters decided by the strategists.
When the user wants to remove their funds they will receive tokens at the current pool ratio. For example, if the ETH/USDT pool is currently a 60/40, then the user will receive 60% ETH and 40% USDT.
When the user claims fees, 20% is first subtracted and put to the Popsicle Treasury as a Performance Fee to be delivered to nICE holders. Then the remaining 80% is sent to the user.
Rebalancing:
The rebalancing currently runs only on one strategy, we will however be looking at making new strategies as well as working with anyone interested in collaborating or making a strategy for Sorbetto Fragola.
Bear in mind that as of right now Fragola is only available on Ethereum and Arbitrum, as it interacts with Uniswap v3 technology. If the technology becomes available on other chains, then Fragola may be deployed there as well.
The Benefit to the Sorbetto Fragola Liquidity Providers!
Gas fees are optimised. Fragola rebalances all users funds in a single transaction removing the need for individuals to do so themselves.
Capital is more efficient. Fragola rebalances funds so that capital is always within the range being trading.
User monitoring is reduced. Fragola automates a lot of the processes allowing the users to monitor their positions less frequently.
Sorbetto Limone
Sorbetto Limone is another flavor of Sorbetto. It consists of a Liquidity Aggregator that allows you to automatically maximize the trading fees that you earn from Liquidity Providing (LP) tokens. Our idea is simple, but powerful at the same time: instead of manually checking which DEX will deliver the best passive income, in the form of both trading fees and incentivized rewards, with Sorbetto you can simply deposit your tokens and it will make the calculations, and transactions for you!
In addition, Limone allows users to leverage LP farming at great rates thanks to Abracadabra Money Technology! Find out how to use Limone here.
The Benefits to the Sorbetto Limone Liquidity Provider:
LPs no longer have to take care of figuring out where and when to move the liquidity from one dex to another.
Gas fees optimised, by Sorbetto having lots of liquidity from lots of different users a liquidity provider pays fewer gas fees as he is sharing the fees with everyone else.
Higher yield due to three major factors. First, LPs that have higher trading volumes, and thus more trading fees, will be hunted down and utilized. Secondly, LPs that are incentivized with rewards will also be located and utilized. Thirdly, capital is spread around efficiently to ensure that certain pools are not saturated to the point that trading volume does not justify pool liquidity depth.
Thanks to our partnership with Abracadabra Money, Limone allows the cheapest possible LP leverage farming.
The benefits to the ecosystem:
Liquidity is much more efficient and is where it is needed.
No matter what chain someone is using they will be able to access all assets.
Slippage everywhere is reduced.
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