Caravan

A new market for liquidity positions. Rent liquidity from liquidity providers. Rent out your liquidity to others. Buy, sell, and trade liquidity positions without pulling liquidity out of the pool.

Caravan

Created At

UniCode

Winner of

UniCode Finalists

Uniswap Best Caravan Hack Runner Up

Project Description

Liquidity providers can rent out their positions for a fixed duration in exchange for an up-front lump sum to renters, who are able to collect fees from the position for the duration of the rental. Providers will be able to hold their positions long term but receive guaranteed cash flow in the short term. Renters can profit by collecting fees from positions without holding the underlying assets.

How it's Made

Caravan's backend is coded in Solidity and deployed to the Ethereum blockchain. Caravan's frontend uses web3 and Angular to communicate with the backend. In traditional finance, banks often swap cash flows from their assets for a fixed period of time. They do this because they want to hold onto their assets long-term, but believe their counter-party's assets will outperform their own in the short-term. We are porting this over to DeFi, specifically for Uniswap.

We are going to make a platform that allows for the lending and renting of Uniswap v3 liquidity positions. Liquidity providers can lend out their positions for a short amount of time to renters, who are able to collect fees from the position for the duration of the rental. Lenders will be able to hold their positions long term but still get short term cash flow.

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