Visor Finance is a project aiming to tap maximum benefits from Uniswap v3.
In brief, Uniswap is the largest DEX globally, operating from Ethereum presently managing over $7 billion as TVL.
The platform is undoubtedly the most liquid, relying on the security of the base layer and the broader DeFi community for high liquidity and better user experience.
The Evolution of Uniswap
The differentiating feature between Uniswap and a CEX is the developers’ decision to use the Automated Market Maker (AMM) model.
It is a deviation from the approach taken by EtherDelta—one of the first DEXes who opted for the order book model resulting in low liquidity and bad user experience.
Uniswap benefits from the AMM model and dangles the fee-sharing carrot to liquidity providers (LPs) instead of an order book.
All asset pricing is within a price function guided by mathematics along a price curve. Since LPs provide the much-needed liquidity in any pair pool, they also earn fees from their activity.
Uniswap was the first DEX to introduce LP tokens. These are representative of the share of a liquidity provider in the pool. The higher the LP token amount, the more the fees earned from the pool.
The amount earned is a factor of the liquidity locked in a pool at any one time. It fluctuates depending on the demand and supply of the pair.
LP tokens were the first notable introduction in Uniswap once it launched in late 2018.
It is subsequent iterations—Uniswap v2, which launched in May 2020, turbo-charged demand for Uniswap, forcing the team to iterate further, rolling out exciting features.
When Uniswap v3 went live this year, the crypto and DEX community were blasted by Uniswap product offerings.
Liquidity NFTs in Uniswap v3
The main feature in Uniswap V3 is concentrated liquidity.
Here, unlike in V2, a user can decide to provide liquidity within a specific price range.
This is a deviation from before where liquidity was provided across the price curve spectrum, causing inefficiency.
With a small amount in V3, a user can provide liquidity within a given price range and earn more fees while also receiving an LP token representative of the range of liquidity provided.
This LP token is unique and is, therefore, an NFT.
According to Uniswap, these liquidity NFTs supplying within a custom range are not ERC-20 tokens—as would be the case.
Instead, they are NFTs complying with the ERC-721 standard. What’s more, they are not re-investable. Fees generated from this custom range are stored separately.
This is where Visor Finance steps in, aiming to provide even more opportunities for end-users.
Visor promotes itself as an active liquidity management protocol integrating with Uniswap v3.
Since Uniswap v3 allows for different versions of liquidity provision—thus flexibility—Visor is setting out to build periphery contracts that will wrap the liquidity NFTs providing liquidity and earning fees within a provider’s choice trade range.
Out of this, Visor Finance is building various products, including a Vault, and expanding the same on DeFi to maximize output.
Visor Finance describes their smart vaults as personal NFT vaults enabling smooth interaction with smart contracts and safe interaction with other DeFi protocols. They further add that their smart vaults are ingenious innovations for even greater control of assets.
Of note, the capital efficiency holy grail provided by Uniswap v3 is spurring development, allowing Visor developers to double down, release even more products.
Visor Finance Solutions
Visor Finance offers three leading solutions:
- A Visor Vault allows users to earn rewards for depositing NFT liquidity tokens whenever they supply liquidity to supported projects. It is a Visor-compatible smart contract that allows supported projects who want to boost their liquidity to reward NFT holders with extra rewards. Since competition is stiff, Visor Finance incentive users to deposit their liquidity NFT tokens to the vault via the Hypervisor.
- Re-directing Earned Fees to Income Generating Assets where the project is tapping on the inability of earned fees to be re-injected back, allowing the pool’s liquidity to grow over time even without more liquidity providers adding capital. This is changing in Uniswap v3 due to NFTs. Fees would be redistributed primarily depending on the custom range chosen by the liquidity providers and not re-invested. Instead, fees are stored separately in token form. To take advantage of this, the Visor Smart Vault would contain a whole range of income-generating assets; ensuring fees collected from liquidity provision earn even more fees for token holders.
- Time-Locking of NFTs where Unlike in V2, it will be virtually impossible for existing solutions to time lock NFTs breeding confidence among token holders of a given project. Envisioning this problem, Visor Finance, through the time lock feature offered by their smart vault, will seek a resolution, allowing projects to time lock assets.
Beyond this, Visor Finance plans to introduce what they term as “truly” decentralized lending and borrowing using NFTs as collateral, create networked vaults, and much more.
VISR Staking, Gamma Strategies, and Partners
Visor Finance also has a staking program.
The project will collect a 10 percent fee from every re-investment epoch to purchase VISR from the market. VISR stakes are eligible to receive these purchased tokens.
Additionally, Visor Finance aims to create as many strategies as possible, taking advantage of the active liquidity management that Uniswap v3 tags. In that regard, Visor now has Gamma Strategies, an organization that will actively fund “Active LP” strategies and research.
Visor Finance is funded by Maven 11 Capital, Spartan Capital, Electric Capital, Digital Currency Group, and others.
Visor Finance (VISR) Tokenomics, ROI, and P/E
VISR is the governance and utility token of the trustless platform on Ethereum.
There will be 100 million VSR tokens.
The project raised funds from Balance through the Liquidity Bootstrapping Pool. Distribution will be as follows:
- 30 percent towards the Balancer LBP
- 20 percent towards liquidity provision in Uniswap—in two phases
- 25 percent towards post-launch liquidity provision incentives
- Ten percent to Bounties and Grants—to stimulate developer and community participation.
- Ten percent to development and production—for example, marketing, web making, and more.
- Five percent to Retroactive Gas subsidies—for first-time minters whitelisted by Visor
VISR has a market cap of $21.6 million from a circulating supply of around 25 million.
From a seven-day moving average revenue of around $70.31k and TVL of $9.98 million, Visor Finance has a P/E of 125X.
The higher the P/E, the higher the project’s potential. According to token terminal the revenue is going up and price is going down making it and attractive moment to watch for buy-ins.
The token is only available for trading at Uniswap.
Visor Finance (VISR) Catalysts
- Visor is about to launch on Arbitrum Layer 2 for Ethereum. The Arbitrum ecosystem is heating up and Visor is making sure to be early in becoming important layer 2 infrastructure.
- A big recent trend for DeFi protocols is protocol owned DEX liquidity. Visor Smart Vaults seem to be the best solution in the market and we hear multiple innovative teams are working on this.
- VISR has a relatively low market cap of around $22 million, while Uniswap v3 manages over $2.9 billion of assets.
- Visor Finance team aims to build better passive income strategies for liquidity providers in Uniswap v3, offering a higher return on investment despite being fine-tuned.
- Over $500k of Uniswap Fees have been distributed to Visor Stakers, a fact that would draw even more investors, boost the project’s P/E.
- Despite launching three months ago, VISR ROI is relatively low. Users who get in now might clip the token while it is comparatively undervalued.
- The VISR token distribution was fair and prioritizes community members. It explains why the token is relatively stable, syncing with the tune of the crypto market. In a recovering market, a pumping BTC would further propel VISR to new highs.
- Visor Finance actively purchases VISR from the market and distributes it to stakers, supporting prices. As the project grows, there would be more upward pressure for VISR prices.
- Visor Finance is funded by over seven crypto funds, including Digital Currency Group, behind CoinDesk, Genesis Mining, and Grayscale Investments.
- The team recently raised $3.5 million, funds which goes towards implementing the team’s objective of creating value to investors and bridging DeFi and liquidity NFTs by Uniswap v3.
- The team is considerate of first-time NFT users and has allocated 500k VISR tokens as subsidies. This is a spark that would incentive participation, driving VISR prices even higher.
- The integration of NFTs in DeFi is still developing. However, Visor Finance has a working product offering lucrative returns. This value proposition might see VISR tokens rally even higher
- Visor Finance continues to build, refining products, and improving avenues for projects and holders willing to use any of their Gamma Strategies. The team now has a liquidity management position tool that could further accelerate the onboarding process.
- Visor will eventually launch in Layer-2, Optimism and has recently launched on Arbitrum L2, further improving user experiences through lower on-chain fees and faster transaction settlement regardless of smart contract complexity. As per their estimation, there will be over 92 percent reduction in active management costs of Gamma Strategies once running on Layer-2.
- Visor Finance also plans to introduce impermanent loss insurance for Uniswap v3 LPs