On November 14th, SteakHut completed its seed round of financing led by Varys Capital. Blizzard, Avalaunch, angel investors, BenQi founder Hansen, Camelot founder Ironboots, and GMX founder Coinflipcanada also participated in the investment.

SteakHut is a Trader Joe-based LP dynamic management + liquidity mining platform. Its native token STEAK has risen by 70.80% in the past 7 days. According to coingecko data, as of the time of writing, the price of STEAK is $2.13.

In addition, the team announced the launch of a brand new SteakHut Liquidity V2 on November 21, 2023. This is the first decentralized liquidity platform for Web3, which brings unlimited possibilities to SteakHut's products and opens the door to attract more users.

Based on Trader Joe's Liquidity Management Solution

SteakHut belongs to the UniV3-Fi track project. Due to Uniswap V3 being primarily based on the ETH mainnet and the Uniswap ecosystem being relatively closed, the LP user ecosystem of Uniswap V3 is also relatively closed. The user profile mainly consists of institutions, quantitative teams, arbitrage robots, and DeFi Degen, with little growth in DeFi retail investors.

Related reading: "UniV3-Fi Series Research Report 1: Overview and Development Prospects of 30+ Track Projects".

As a V3 Fi project, this also indirectly limits the user growth of SteakHut. So from this perspective, the development of SteakHut and the 70% increase in STEAK in a week are due to TraderJoe. According to DefiLlama data, as of the time of writing, TraderJoe is the third largest DEX in terms of trading volume on Avalanche.

Due to the fact that SteakHut mainly serves TraderJoe, the success of Trader Joe also means the success of SteakHut. And the growth logic of SteakHut mainly comes from TraderJoe V2 adopting the DLAMM (Liquidity Book) mechanism and the increase in market share in the Avalanche and Arbitrum ecosystems.

Last August, Trade Joe launched version 2 of "Liquidity Book". Liquidity Book introduces concentrated liquidity to DEX, which is a way of achieving "discrete concentrated liquidity" by using "price boxes" to discretize liquidity and then aggregate it. By grouping liquidity, the liquidity of asset pairs is arranged in different "discrete boxes", each with a specific price, allowing users to provide liquidity to multiple boxes at the same time.

The method of building discrete concentrated liquidity on Liquidity Books can be seen in: "6 ways to build discrete concentrated liquidity, how Liquidity Book changes the DeFi landscape on Avalanche".

In short, Trade Joe V2 AMM is similar to an order book, using non-continuous liquidity, with minimum price precision based on proportion rather than fixed values, and vertical aggregation of liquidity for better composability. Liquidity incentives are based on trading fees obtained from LP and effective TVL.

Due to the fact that in Trade Joe V2, liquidity is vertically aggregated in each bin, while in Uniswap V3, liquidity is horizontally aggregated. The main advantage of vertical aggregation is that it allows for liquidity substitution.

Currently, Trade Joe V2 dominates on Avalanche and its influence on Arbitrum is also increasing. It provides much-needed funding efficiency on the BNB chain. As Trade Joe V2 continues to develop, liquidity management will become crucial. This is where SteakHut comes in.

Building the Liquidity Layer for DeFi

By using SteakHut Liquidity, users can deposit tokens into liquidity pools with specific price ranges. This essentially automates the user's liquidity management process to stay within the relevant range, and most importantly, users earn as much profit as possible from providing LP rather than token emissions.

These rewards include a considerable amount of real profits. Specifically, users who deposit LP tokens into SteakHut will receive 80-97% of the platform's total revenue. The remaining portion belongs to users who stake STEAK tokens. As the maximum supply of STEAK is only 5 million, all rewards paid to STEAK token holders will be paid in JOE tokens.

In addition, STEAK follows in JOE's footsteps to become a fully interchangeable token (OFT) across Avalanche, Arbitrum, BNB Chain, and any other places where JoeV2 is most likely to expand in the future.

SteakHut Liquidity V2 Features

On the basis of SteakHut Liquidity, the team announced the launch of a new SteakHut model, namely SteakHut Liquidity V2. According to the official blog, it has the following features:

·Automated liquidity strategy: Using automated liquidity strategies to break down barriers to entry for concentrated liquidity, through backtesting and design, to maintain liquidity optimization.

·无需许可的金库创建：Directly create and manage your own liquidity pool through the SteakHut platform without the need for permission.

·Composable Liquidity Distribution: Utilize our flexible smart contracts to deploy up to 20 liquidity pools for each treasury and enjoy cross-tier liquidity allocation.

·Improve capital efficiency: Optimize your liquidity with SteakHut, automatically reposition and rebalance liquidity. This helps create a deep and capital-efficient market for your tokens, all seamlessly managed through a single platform.

·Concentrated Liquidity Farm: Earn additional returns on concentrated liquidity positions through the farm option on SteakHut, thereby increasing your liquidity yield.

·Earn Performance Fees: Create and manage your own liquidity strategy, and share it with your community to start earning performance fees.

其中，无需许可的金库意味着 DAO 可以创建一个仅适用于其成员的自定义策略。并且，该金库是 SteakHut「流动性即服务」（LAAS）计划的一部分，在构建期间，SteakHut 也在与尽可能多的知名 DeFi 项目合作。因此也有社区成员称其为「defi 的流动性层」。

Translation:

Here, the permissionless vault means that DAO can create a custom policy that only applies to its members. Additionally, this vault is part of SteakHut's Liquidity as a Service (LAAS) program, and during its construction, SteakHut is also collaborating with as many well-known DeFi projects as possible. Therefore, some community members refer to it as the "liquidity layer of DeFi".

Reimagining Liquidity

SteakHut has considered the needs of liquidity providers and has planned an experience to provide retail-friendly and institutional-grade market-making solutions for managing on-chain liquidity. With SteakHut Liquidity, you can access the most composable and flexible smart contracts in the Web3 ecosystem, allowing you to control your liquidity.

Liquidity providers will be able to access a range of automated liquidity strategies for all key CLMMs directly from the SteakHut dApp, and can join custom strategies or easily deploy their own strategies, and have full control over their entire investment portfolio from a professional platform.

SteakHut Liquidity V2 is completely permissionless. Deploy your own liquidity pool, choose up to 20 liquidity ranges, and have full control using SteakHut's inventory management tool.

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