ICHI Partnerships Optimize Hedera Trader Experiences and Market Efficiency

Published By
Elaine Song
March 21, 2024

ICHI Aims To Bolster Hedera’s Trader Experience and Market Efficiency 

SaucerSwap Partnership Brings Single-Sided Liquidity Provision Vaults To Ecosystem 

The HBAR Foundation is proud to support ICHI and their subsequent launch on SaucerSwap that brings single-sided liquidity provision vaults to the Hedera network. 

Both are significant points in the evolution of our DeFi ecosystem and UX.

Liquidity provision plays a crucial role in facilitating seamless trading experiences and ensuring market efficiency and as our DeFi ecosystem continues to grow, the demand for innovative solutions to optimize liquidity management becomes increasingly apparent.

In response to this demand, ICHI's automated liquidity management technology integrated into the SaucerSwap platform.

Active Liquidity Management

ICHI is at the forefront of automated liquidity management, offering sophisticated algorithmic strategies designed to optimize liquidity provision on decentralized exchanges (DEXs). This technology enables users to seamlessly provide liquidity across a wide range of token pairs while earning on-chain yield in the process. By dynamically adjusting liquidity positions based on market conditions, ICHI's Yield IQ vaults are designed to maximize returns for liquidity providers (LPs) while mitigating risks associated with impermanent loss.

SaucerSwap has emerged as a leading DEX built on the robust infrastructure of the Hedera network. With its commitment to transparency, security, and user-centric design, SaucerSwap provides traders and LPs with a seamless and efficient trading experience. By leveraging the unparalleled speed and cost-effectiveness of the Hedera network, SaucerSwap has quickly gained traction within the DeFi community, attracting users seeking a fair, accessible, and decentralized trading platform.

SaucerSwap’s V2 Launch

SaucerSwap V2 introduces concentrated liquidity, a feature allowing LPs to allocate capital within specified price ranges. This innovation significantly enhances capital efficiency, fee earnings, and risk mitigation for LPs compared to V1. With each liquidity position represented by a non-fungible token (NFT), LPs can adapt to market conditions effectively, maximizing fee earning potential. SaucerSwap V2 also implements a multi-tiered fee structure, ensuring appropriate compensation for LPs based on the risk associated with different token pairs. The launch of V2 perfectly ties in with ICHI’s automated liquidity management solution. 

Additionally, the Liquidity-Aligned Reward Initiative (LARI) provides token incentives for efficient liquidity contributions. LPs no longer need to stake their liquidity position NFTs to earn rewards, simplifying the user experience and optimizing gas efficiency. Unlike V1's yield farm, LARI supports various HTS tokens for rewards, enabling projects to customize campaigns for their liquidity pools. Rewards accumulate based on the duration a position remains within the active tick range, and participants receive rewards through automatic airdrops at the end of each epoch.

Empowering Users with Choice and Flexibility

Through ICHI’s collaboration with SaucerSwap, we’re all one step closer to reaching the goal of empowering users with more choice and flexibility in liquidity provision on the Hedera network. 

SaucerSwap users gain access to ICHI's single-token deposit Yield IQ vaults, enabling them to participate in a diverse array of liquidity pools across various token pairs. Whether it's stablecoin pairs, more volatile pairs or liquidity pairs for emerging DeFi projects, SaucerSwap users have the flexibility to provide liquidity where they see fit, all while earning on-chain yield through ICHI's automated liquidity management solution. 

The best part is that it’s all single-sided, so users only need to provide one side of the pair to earn more of their favorite token.

ICHI’s dynamic liquidity management algorithms ensure that liquidity positions are continuously adjusted to adapt to changing market conditions, further enhancing the resilience of SaucerSwap's liquidity pools.

How Does Yield IQ Exactly Work?

Yield IQ’s process is simple and efficient. Users deposit their preferred tokens into the platform, and Yield IQ allocates these tokens into concentrated liquidity AMMs, without initiating any swaps. In return, users receive LP tokens representing their share in the liquidity pool.

The true magic unfolds as Yield IQ, powered by Chainlink Automation, dynamically adjusts the concentrated liquidity position based on token arrangements and real-time market conditions. Users earn trading fees when trades occur, supplementing potential token appreciation. With vigilant oversight of token composition, Yield IQ guards against harmful arbitrage and market shifts. Users can withdraw their initial deposit and earnings at any time by exchanging LP tokens for their share of assets in the vault

Whether in bull or bear markets, Yield IQ's continuous monitoring and rebalancing mechanisms safeguard users from over-exposure and potential losses. This feature is particularly advantageous in volatile market conditions.

Why Yield IQ? Simplicity and results. It offers:

  • Single-token liquidity deposits
  • Automated management that grows deposits of this token
  • Vigilantly adjusts the liquidity composition between the two tokens, mitigating the risk of over-selling the deposited token

Users are now able to deposit into Yield IQ vaults through SaucerSwap’s user-friendly interface. There are numerous pairs to choose from and available for anyone who wishes to provide liquidity using Yield IQ. 

Final Thoughts

SaucerSwap V2's concentrated liquidity feature, combined with ICHI's automated liquidity management technology, empowers users with flexibility, efficiency, and earning potential. LPs can strategically allocate capital, maximize fee earnings, and mitigate risks, while participating in a diverse array of liquidity pools. The implementation of LARI further incentivizes efficient liquidity contributions, enhancing protocol governance and broadening the distribution of SAUCE tokens. This collaboration exemplifies the ongoing innovation and collaboration driving the DeFi ecosystem forward, paving the way for a more accessible, efficient, and sustainable decentralized financial landscape.

Learn more by visiting the ICHI Website, Medium, Twitter or Telegram.