Lumos 🏅

Product Overview

Lumos is a next-generation application designed to empower liquidity providers (LPs) in DeFi ecosystems by offering advanced tools for optimizing liquidity positions in Concentrated Liquidity Market Maker (CLMM) pools. Lumos combines automated liquidity management, impermanent loss (IL) calculations, and pool simulations to provide LPs with actionable insights and tools to maximize their returns while minimizing risk.

Lumos will also integrate an AI agent to assist users to setup their LPs with the best params, for organization reasons, the AI agent code is located in a separate repository:

https://github.com/undefinedorgcr/lumos-ai-agent

Key Features

1. Automated Liquidity Management for CLMM

Lumos dynamically manages liquidity positions within CLMM pools, optimizing for profitability and reducing the manual effort required by LPs.

• Dynamic Range Adjustment:

  • Automatically adjusts the liquidity range based on real-time market conditions.

  • Uses volatility metrics, price trends, and volume data to determine optimal ranges.

• Rebalancing:

  • Monitors price movements and reallocates liquidity when assets move out of the initial range.

• Gas-Efficient Strategies:

  • Minimizes gas costs by bundling adjustments and only performing actions when cost-benefit analysis supports profitability.

2. Impermanent Loss (IL) Calculator

A powerful calculator that helps LPs understand the impact of market movements on their positions.

• Custom Inputs:

  • Users can input current pool data (token prices, liquidity ranges, etc.) or fetch it directly from supported protocols.

  • Allows customization of price scenarios to estimate IL under different market conditions.

• Detailed Reporting:

  • Provides a breakdown of IL, including fees earned, token price changes, and net impact on the position.

• Historical Analysis:

  • Visualizes past IL trends based on market movements and user activity.

3. Pool Simulations (Full-Range & CLMM)

A simulation engine that models potential outcomes for various liquidity strategies.

• Full-Range Pools:

  • Simulates traditional AMM strategies where liquidity is distributed across the entire price range.

• CLMM Pools:

  • Allows users to define specific price ranges and simulate performance in Uniswap v3 or similar platforms.

• Performance Metrics:

  • Provides APY predictions, fee generation estimates, and expected IL for each scenario.

• Scenario Analysis:

  • Users can compare strategies side-by-side to identify the most profitable approach.

4. Dashboard and Analytics

An intuitive interface offering real-time insights into user positions and market conditions.

• Live Position Monitoring:

  • Displays current liquidity distribution, accumulated fees, and IL for active positions.

• Market Insights:

  • Shows price trends, volatility data, and volume metrics for supported pools.

• Notifications:

  • Alerts users when significant events occur, such as liquidity leaving a defined range or optimal rebalancing opportunities.

Supported Protocols (MVP)

• Ekubo

Roadmap

Phase 1: MVP Development (0-6 months)

• Core Features:

  • Wallet integration.

  • IL calculator with basic inputs.

  • CLMM pool simulations.

• UI/UX Design:

  • Create intuitive dashboards for managing and visualizing liquidity.

Phase 2: Advanced Features (6-12 months)

• Automation Engine:

  • Implement dynamic range adjustments.

  • Add gas-efficiency optimizations.

• AI Integration:

  • Train models for predicting optimal liquidity management strategies.

Phase 3: Expansion (12-18 months)

• Mobile App:

  • Launch a mobile-friendly version of Lumos.

• Community Tools:

  • Enable users to share and adopt successful strategies.

Monetization Strategy

1. Freemium Model:

   • Free access to basic features (e.g., IL calculator and simple simulations).

   • Premium subscription for advanced features like automation and detailed analytics.

2. Performance Fees:

   • Charge a small fee based on the profits generated through automated liquidity management.