Arrakis: Uniswap’s Yield Aggregator

• Arrakis is a yield aggregator that optimizes returns and simplifies position management for Uniswap V3 LPs.
• Capturing and compounding the lion’s share of transaction fees has caused Arrakis LPs to outperform Uniswap V3 LPs by over 10x in DAI-USDC pools.
• The core team has postponed the SPICE token launch to focus on building a high-quality product, rethinking how a token will complement the protocol.
• Arrakis has impressive TVL growth in 2022, but 98% of Arrakis TVL resides in MakerDAO’s 50x levered vaults.
• With the upcoming release of SPICE, V2 vaults, and Arrkais PALM, the protocol has the potential to attract new users and prove product market fit for a Uniswap V3 yield aggregator.

Uniswap V3 uses concentrated liquidity to deepen liquidity and improve capital efficiency, providing traders with favorable execution prices when compared to constant product AMMs. However, these Uniswap V3 LP positions have complex impermanent loss risk profiles, are time consuming to manage, and require a deep understanding of DEX infrastructure. Further, these positions are represented by NFTs that limit their use as DeFi building blocks and do not automatically reinvest trading fee revenue.

Arrakis was born to automate Uniswap V3 liquidity provision and make these positions accessible to all DeFi users. Arrakis replaces LP NFTs with fungible ERC-20 tokens that enable LPs to use their positions as collateral elsewhere in DeFi (active on Maker and Aave) and allow for auto compounding fee revenue. In short, Arrakis is a yield aggregator built to simplify position management and optimize returns for Uniswap V3 LPs.