Uniswap co-founder unveils autocompounding liquidity technology design, says it will be added to Uniswap’s roadmap.
59 minutes ago
Uniswap co-founder Hayden Adams has published a post detailing an auto-compounding liquidity technology design he contributed to pools.trade, describing it as "quite elegant". The core logic of the mechanism is: once a liquidity position is deposited into a smart contract, anyone can withdraw all unclaimed fees from that position, provided they simultaneously increase the size of the liquidity position by 0.2%. As fees accumulate over time, once their value exceeds 0.2% of the liquidity, searchers are naturally incentivized to add 0.2% of liquidity to claim the fees, forming an auto-compounding cycle that requires no external intervention. Adams called the mechanism "super simple and clean", noting it is built on Uniswap’s token vault concept. He further pointed out that the design also works for auto-compounding of regular Uniswap LP positions, so the team has decided to include it in Uniswap’s roadmap. This means Uniswap liquidity providers can look forward to native auto-compounding functionality in the future.
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