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Protocol Background and Introduction

Uniswap V3 introduced a concept of concentrated liquidity pools to the DEX landscape. While by design this was meant to bring improved capital efficiency to the LP token holders, the product itself became power user-oriented and as such not suitable for a passive supply-and-forget approach. For their positions to earn trading fees and stay profitable Uniswap V3 LP token holders need to track the relevant prices and re-deploy their liquidity to fit the existing market levels. This is often complex and expensive, especially for users with smaller stacks, where Ethereum gas fees become prohibitive.

Rebalancer protocols entered the scene en-masse post-May 2021 and offered Uniswap V3 LP token management strategies which automate this process for the users, thus making it more accessible. However, since there are multiple rebalancers on the market, a user needs to make an informed choice and be able to change it, depending on their desired strategy and risk profile, with minimal operational friction.

This is where an aggregator service finds its niche. The overarching idea for it is to be on top of the rebalancer strategies market and offer an impartial view on all the relevant choices available at a given moment. It helps the user to select, deploy and withdraw value to and from target rebalancers, while abstracting away complexities of managing individual interactions with rebalancers and offering a portfolio approach instead. The Aggregator product we (Cargo Labs team) are building serves up all the suitable rebalancers to the users, along with analytical data that are required to select such a platform.