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Alien Base is designed to be the human-friendly DEX. Our vision is to make simple but innovative products that anyone can understand and use to the fullest after just a brief introduction.
After an initial launch on Base in August, we are now transitioning for the long-term by launching products to increase the protocol's revenue and optimize tokenomics.
V3-like concentrated liquidity is a must for today's DEXs due to the extreme improvements in efficiency that it offers.
As an example, a concentrated layer of liquidity covering a +- 20% price range will be more than 10x more efficient than a standard "infinite range" xy=k pool. This means that a swap for a given sum would only create 10% of the regular price impact. Plus, V3 opens the door for managed and active market making strategies which can further increase depth.
The biggest challenge with an effective V3 deployment is the incentivization. Due to the non fungible nature of concentrated liquidity positions, creating simple farming programs is not simple.
Alien Base Concentrated Liquidity will work on a "Master Range" concept, which is a fungible ERC-20 wrapper over a shared position. Depending on the assets and pair, it can be more or less concentrated by default.
For example, the master range for a USDC/DAI pool could be 0.99<->1.01, achieving over 200x efficiency. Pairs like ETH/BTC, ETH/USDC and other blue chips can likewise be concentrated to have 5-10x improvement over regular pools with a mostly passive strategy.
Other ranges will be usable as well through more advanced dynamic market making techniques. More details will be available in the future.
Concentrated Liquidity is currently a priority and will be rolled out by the first few weeks of November. While originally it was slated for after perpetuals release, after careful analysis it became clear that launching a V3 is a worthwhile path in the current paradigm.
Perpetuals are the final major product from Alien Base's line of human technology. What comes next will be things never seen before.
A successful Perpetuals platform requires deep liquidity and a wide selection of assets. This requires using high quality oracles and ensuring safe parameters to prevent market manipulation attempts.
We expect to launch Perpetuals in November, after ensuring that we can safely use the technology to offer a more exciting platform than what's seen elsewhere. The launch will also include a tokenomics revamp and dedicated liquidity mining programs for leveraged trading liquidity.
So far for the next year we're planning two major product releases under the working names of Project Quasar and Project Nebula.
What is Project Quasar?
Project Quasar is a simple options platform built on top of the Alien Base pools that allows traders to harness the natural impermanent loss of these positions for their own gain.
By borrowing and redeeming LP tokens (including from V3), they will be able to enter a win-win position called a Strangle. This essentially consists of "longing" impermanent loss, meaning that the trader will make money for any direction that the price will go.
Because it's win-win, the cost of entering these positions (which we can call tickets) will be priced relatively high by an automated algorithm that takes market demand into account. The cost of the tickets will be streamed to the Quasar liquidity providers, who will be earning extra yield on their positions at no additional losses (buyers make money on the IL that LPs would've suffered anyway).
This platform will be custom developed and experimental (although based on existing contracts). Because of this it will require deep testing and auditing, as it's much more complex than deploying existing solutions. We expect its release some time in Q1 2024, but this estimate is subject to change.
What is Project Nebula?
Project Nebula is Alien Base V2, an evolution of the existing spot and derivatives platforms that joins together extremely powerful concentrated liquidity with perpetuals, without using oracles or other centralized systems. It will support deep, permissionless and flexible liquidity on any kind of asset, from the most liquid to the freshly-launched gems. Compared to existing concentrated liquidity, it will be more effective and human-friendly, maintaining the spirit of DeFi.
The vision for Nebula is to become the ultimate DeFi platform, uniting all key swapping primitives, spot, derivatives in one place.
As an ambitious core infrastructure product, it will take time, money and effort to deliver Nebula in 2024.
The aliens have more ideas to bring to Earth, including things that aren't all about swapping. The roadmap for the far future is in flux for now, but it will not finish any time soon.