From the simulation experiment we conducted (see project details), we are able to see that there is a quantifiable benefit to dynamically varying fees for AMM pools by using a model to emulate how centralized market-makers quote on orderbook exchanges.

This model can prove to be extremely powerful for an AMM like Uniswap:
- **Liquidity Providers win** because they will suffer from less impermanent loss in the long run.
- **Regular traders win** because when folks trade normally most of the time they can actually benefit from lower fees.
- **Opportunistic arbitrageurs lose** because they make less net profit (due to higher fees) when they arb a pool. 

**Vanna x Uniswap Synergies**:

We want to create a positive sum game for Vanna x Uniswap, here are some benefits that we think Uniswap will benefit from for this partnership.

1. **Improving Uniswap (less LP impermanent loss)**
   - The most obvious benefit for Uniswap is that Vanna’s models can help improve the liquidity provision experience for LPs on Uniswap, by reducing the impermanent loss they suffer from via dynamic fees.

2. **Opening doors to AI on Uniswap**
   - The Vanna x Uniswap integration opens the doors to new quant research and ML engineering talent that may be interested in building sophisticated models to help improve the initial fee calculation model, or build out other sophisticated models to help build more features or solve other problems on Uniswap. Examples:
      - Systematic trading strategies 
      - AI-driven smart execution
      - Models to predict trade toxicity for varying trading fees
      - Using HMM market regime models to vary fees in different market environments
      - Incorporate AI-generated credit scores to vary fees
      - Creating models for pricing derivatives of tokens on Uniswap.

3. **Opening doors to new applications on Uniswap**
   - Kickstarting the Vanna x Uniswap integration will encourage more intelligent dApps to be developed on Uniswap in the future. AI driven vaults that use Uniswap for trading, ML driven risk management that uses Uniswap to de-risk or hedge portfolio exposure, systematic execution strategies, ETFs that have smart rebalancing…etc.

4. **Tech-forward PR**
   - With AI and ML being increasingly popular and ubiquitous, having a progressive approach to integrating these technologies to improve the experience of users reflects well on the protocol team. It's also exciting to experiment with new and powerful technology to see how it can create novel benefits to positively impact a protocol and its users.