YIP-03: Strategy formulation and implementation on Polygon chain by Shadow Labs

Motivation As YIN Finance platform comes close to being deployed on Polygon chain, as the primary strategy provider in YIN Finance, Shadow Labs intends to continue the good work to be the first YIN Finance CHI strategy provider on Polygon chain. The goal of YIP-03 is to leverage YIN Finance platform to showcase Shadow Labs strategy capability in DEXs with AMM mechanism. With the benefit of low gas fee and faster transaction execution on Polygon, Shadow Labs will be able to design high frequency strategies that are meticulously optimized to maximize yield for YIN Finance subscribers.

Proposed CHI Strategies As a start, CHI strategies on Polygon consisted of high volatility token pair USDC / WETH and one low volatility pair USDC / USDT. When dealing with high volatility token pairs in the likes of USDC / WETH, users will be presented with options in two fee tiers: 0.05% and 0.3%. All these 3 pairs will be based off the pools in Uniswap V3 Polygon chain. In the case of supplying liquidity for WETH / USDC token pairs, it is recommended to choose 0.3% fee tier when the trading volume is active and fluctuating, and choose 0.05% when the range is barely fluctuating. For more details on the strategy, please visit our article on Deep Dive into the Analysis of Strategy Performances Based on Volatility Characteristics. . About Shadow Labs Shadow Labs is a premium research institution responsible for the research and development of active liquidity strategies for DEXs with AMM mechanism including but not limited to Uniswap V3. This allows DeFi users to navigate an ever-changing environment while ensuring that liquidity providers obtain maximum yield from their liquidity. With the boost from Shadow Labs, liquidity providers are able to automatically reinvest their liquidity, instead of just having their liquidity passively lying around. Members of the Shadow Labs team have a vast wealth of experience in the blockchain industry. This includes two of the Co-Founders of the Hashingbot, who cumulatively have more than 10 years of combined experience in traditional trading and investment industries as well as having managed upwards of $200 million in assets during that time. The other two members of the team have previously worked as a System Engineer at Merrill Lynch, and as a Quant Trader at Deutsche Bank. Please visit our homepage ShadowLabs for more information and reach out to us at contact@shadowlabs.tech.