Sorbetto Fragola

How to use Sorbetto Fragola

First of all, click on the "Liquidity Provide" button on the top right corner of the screen, after that, select "Sorbetto". The page is divided into two frames with "Sorbetto Fragola Deposited" at the top and "Sorbetto Fragola Pools" at the bottom.

Sorbetto Fragola Deposited

The Sorbetto Fragola Deposited frame is the place where you will interact with your already opened positions. Each position will be found in its own frame below. Remember that there is only one frame for each pair available on Fragola.

For example: If you put 1000$ worth of tokens into the ETH/USDT position then later put another 500$ worth, your position will show 1500$ worth of value. (disregarding any change in the value of the tokens)

An Individual Position:

On the left, you will see an image that describes this position. In our example, we see that this position is made of both WETH and USDT on the Ethereum Mainnet. Next to this, we can see text that displays the amount of Popsicle Liquidity Provision tokens (PLPs) of that particular pair we currently hold in our wallets. Below that, the tokens that make up this position, its USD value, and the amount of fees earned by that specific pair. Underneath this, we can check 3 pool parameters Pool, ~APR, and TVL.

  • Pool - Shows the tokens that make up the position as well as the trading fees of the pair on Uniswap v3.

  • ~APR - Gives an estimated APR for this position based on past performance. This APR is derived soles from the trading fees obtained by being a liquidity provider.

  • ~TVL - Shows the current USD value of all the tokens in this particular position.

On the right we see two buttons; Withdraw and Claim Fees.

  • The Withdraw button will allow you to remove some or all the tokens from that position.

  • The Claim Fees button will allow you to claim the trading fees you have earned with this position.

To add more funds to an already opened position, just click on the respective frame.

The Withdraw Pop Up:

This window will allow you to select how many of your PLPs you wish to redeem for the underlying tokens. You will receive the amount of each token proportional to the current ratio at which Fragola is providing liquidity. In most cases, this will NOT be 50/50. Please note that this exposes the user to Impermanent Loss risk!

The Claim Fees Pop up:

You can use the Pop up above to claim the Fees earned by your position. Remember that Fragola allows users to claim their fees as the underlying tokens that make up their position. (In this example WETH and USDT). From a user perspective tho, claiming fees in order to autocompound them back into the position is not useful, as they are already compounded!

In Uniswap V3, trading fees need to be claimed separately by users. However, with Sorbetto Fragola anytime a rebalance is called, trading fees for all participants are claimed and compounded into the position. In the UI tho, PLP value and Fees Earned are always displayed as different numbers despite being auto-compounded to make the UI more intuitive for users!

The Sorbetto Fragola Pools

Let’s move on to the lower frame, Sorbetto Fragola Pools. All the pools available on Sorbetto Fragola, but not yet used will appear here.

Opening a Position:

To enter a position we can either click the "Join Sorbetto" button or the frame of the pair we want to join. A new page will open with two frames. On the right, you will see some data specific to the pool you selected. On the left, you will see the following frame:

Here we see the input dashboard. On the top, you see two checkbox toggle switches.

  • Use WETH - allows you to use either WETH or ETH to open this position. To learn more about the difference between the two you can read here.

  • Join Proportionally - used if you have the exact amount of tokens already in your wallet needed to open this position.

On the right frame, users will be able to see a series of analytics specific to the pair selected. Make sure to enlarge this frame by clicking on the "Expand" button on the top right corner.

Join a Position Proportionally:

Sorbetto Fragola requires users to join the pool using the token ratio that corresponds to the range in which Fragola is currently providing liquidity. Users can input the amount of one token and the ratio will adjust accordingly. If you already have a sufficient amount of tokens in your wallet, you can click on "Join Sorbetto" and you will be good to go!

Please note, that if this is your first time providing to the pair, you will be required to Approve the token spending first for both tokens in the pair.

Joining a Position Without the Exact Ratio:

If you do not have a sufficient amount of both tokens to join Sorbetto Fragola proportionally, you can untick the "Join Proportionally" button. The UI will change, allowing the users to swap one of their tokens for the other, hence reaching the required ratio.

As you adjust numbers on the top, you will notice that on the bottom, numbers will be displayed dynamically that will notify you of swaps that will have to take place for you to enter the position proportionally.

The top portion of this frame shows you which token will be swapped for the other. In this case, 0.0047 ETH will need to be swapped for 8.5521 USDT. After the swap is complete, these amounts will adjust the "Amount" on the left side.

Below this, you see the "Choose your slippage" settings.

Here you can choose your slippage tolerance for the swap that will take place.

Slippage, in simple terms, is the loss that can occur as other swaps of these tokens take place during the processing of your transaction. To help avoid slippage you can set your gas price higher.

When the settings are acceptable for the users, they can press the "Swap" button on the left under the token input boxes. They will be asked to pay some gas and they will receive tokens in their wallet that fit the ratio of the pool.

Now that we have the right amounts of each token we can tick the "Join Proportionally" button and join the position by following the same steps we followed in the paragraph above.

No matter which method is used, the user should now have PLPs in their wallet and be able to see the position at the top of this page in the Sorbetto Fragola Deposited frame.

Analytics Frame:

Click the Popsicle Icons in the top right corner to cahnge the size of the frame.

On the right, users will be able to check a detailed representation of how Sorbetto Fragola is performing over time, as well as some valuable metrics that will give a detailed picture of the current LPing situation. The graph in the center is intended to explain in what range Fragola is currently providing liquidity, as well as where the boundaries of our current strategy are. As of right now, the rebalance will be called and triggered once the blue line reaches 80% of either side. Once a rebalance happens, it is represented in the graph as a steep shift of both boundaries in the same direction. You can see an exampe on this in the first part of the graph above! If you are interested in understanding what a tick is and how they work please refer to this article here.

The Autocompound Process:

Due to Sorbetto Fragola contracts logic, the fees earned by users are autcompounded back into their position every time a rebalance is triggered. Because of this some users may not be able to withdraw the fees right away, but will need to wait a few hours after the rebalance. Let's dive into this process and see why this happens.

When a Rebalance happens, all the fees accrued into Fragola Smart Contract (fees that could be claimed by the users) are sent to the UNI V3 pool, hence compounded into the user position in order to maximize the possible yield. When this happens, Fragola has 0 claimable fees in the contract. If a user wants to claim fees now, Fragola will withdraw liquidity from the UNI V3 contract in order to pay those fees. Because fragola balance may not be 50% token 0 and 50% token 1 there is a high chance you will not be able to claim your fees proportionally, hence will not receive all your fees. So what happens now, and why do you need to wait before being able to claim all your fees? From this moment on, Fragola will start again claiming fees from the UNI V3 pool and building up a new contract balance that will be used to give fees away when users wants to claim them. As the contract balance is only made up by the two tokens, and build up fairly quickly, users will be able to withdraw their fees 50/50 in a brief period of time.

Due to smart contract limitations tho, trading fees are claimed by Fragola from the UNI V3 pool (hence making them available to be claimed by users) only when someone interacts with Fragola Smart Contract (Deposit, Withdraw, Etc..).

This waiting period gets a little bit longer if a user has a large amount of claimable fees. He might need to wait some hours to be able to claim them while Fragola will need to build up that balance by claiming those fees from the UNI V3 pool!

From a user perspective, whenever a user is not able to claim all of his fees, the best thing to do is simply wait some hours and try again!

The Performance Fees

A 10% Performance Fee is deducted from the profits. This fee will later be used to market buy ICE tokens to be distributed to nICE tokens holders using a process similar to the SUSHI/xSUSHI one. Users will be able to stake their ICE tokens and receive nICE that could later be used as every other interest-bearing token!