We are excited to announce our latest grant allocation under the ‘Innovation’ category to Panoptic. This grant will support the development of a v4 Liquidity Interface, the gRHO platform, aimed at simplifying passive liquidity provision on Uniswap v4.

The objective of the Innovation category at Uniswap Foundation is to implement a sustainable protocol model that reinforces growth by improving the user experience for Uniswap, from swappers, developers, to LPs (liquidity providers). Currently, the user experience on Uniswap v2 and v3 is more catered to active LPs than passive LPs. For example, LPs on v3 must deposit the correct ratio of two tokens, choose a price range, and constantly monitor and rebalance their positions. This complexity discourages many LPs from contributing liquidity. To simplify the LP experience and unlock passive liquidity provisioning, we’ve allocated a $379,000 grant to Panoptic to build the gRHO platform, a v4 Liquidity Interface. 

Simplified Passive Liquidity Provisioning

The gRHO platform will introduce a novel approach to liquidity provision on Uniswap. Unlike Uniswap v2 and v3, where LPs must actively manage their positions to earn yield, the gRHO platform strives to offer passive LPing with no impermanent loss. With this v4 liquidity interface, users will be able to streamline their liquidity provisioning by depositing single-sidedly without selecting a price range or rebalancing positions. gRHO plans to facilitate passive LPs to earn yield without the need for constant management, while their liquidity will remain available for active LPs to borrow and create positions in Uniswap v4. This setup intends to compensate passive LPs for their contributions and provides active LPs with the liquidity they need.

Designed as an open-source, forkable interface, the gRHO platform will cater to both passive liquidity providers and token launchers on Uniswap v4. It aims to enable users to earn yield passively and assists token launchers in creating pools, bootstrapping markets, and managing liquidity. This approach simplifies yield earning for passive users while rewarding more operative users who prefer to actively manage their positions.

Goals and Deliverables

The $379,000 grant will be disbursed across 24-months according to completion of key deliverables.

Key deliverables include an intuitive, user-friendly Interface for Uniswap v4, comprehensive user documentation, training materials, hosting and maintenance, continuous improvement based on user feedback, detailed research reports, open-source software, and rigorous audit reports.

To support user acquisition and community engagement, Panoptic will deploy marketing and outreach campaigns and ensure legal compliance across all jurisdictions. The grant aims to increase Uniswap's total value locked (TVL), attract passive liquidity providers, and increase the number of new pools. Progress will be tracked using publicly accessible Dune analytic dashboards, with regular KPI updates provided to the Uniswap Foundation.

About the Grantee

Panoptic was established in 2022 with the mission of creating governance-minimized protocols that eliminates liquidity fragmentation, ensuring a seamless trading experience. They launched a groundbreaking options protocol, empowering users to seamlessly engage in permissionless on-chain options trading.

Panoptic was founded by Guillaume Lambert, PhD. He’s a former Assistant Professor at the School of Applied and Engineering Physics at Cornell University. His extensive background in financial engineering and his commitment to decentralization have driven Panoptic to the forefront of DeFi innovation.

“This grant not only fuels our gRHO platform but also reaffirms our commitment to making DeFi more accessible for everyone,” says Guillaume. He continues, “With work supported by a grant from the Uniswap Foundation, we are set to revolutionize liquidity provisioning by bringing passive liquidity back to Uniswap through what we call active-passive LP separation.”

A New Era for LPs

Through this new grant, the Uniswap Foundation looks forward to supporting Panoptic in unlocking new possibilities for LPs with the gRHO platform, making it easier to contribute liquidity without the complexities of active management.

Stay tuned for updates on this grant, how to access Panoptic’s gRHO platform and other exciting initiatives from the Uniswap Foundation.