Aperture Finance is seeking to create an end to end, institutional grade tooling, research, and analytics solution for Uniswap V3/V4 LPs on Arbitrum. Aperture has already successfully launched a V1 tooling solution for UniV3 LPs on Arbitrum that has already enabled 400+ Arbitrum LPs to rebalance $36.5M in liquidity (as of 11/17/2023). 

Aperture seeks to build on this success by further investing in liquidity management tooling and launching analytics and research tooling.  

**Liquidity Management Tooling:** 

Aperture’s V1 beta tooling allowed users to easily rebalance their liquidity in 1 transaction by compressing the withdraw liquidity, swap calculation, swap execution, and redeployment of liquidity steps into 1 simple intuitive setup. Users can also rebalance based on a price trigger or ratio trigger (e.g. rebalance if my position becomes 90% ETH or rebalance when ETH hits $2500). Aperture’s V1 also enabled auto-compounding and simplified one off compounding (which similar to the rebalance function combines the collect fees, swap math, swap, and add liquidity into 1 simple step). 

This grant will power a V2 LM tooling solution on Arbitrum. The V2 will aim to add more advanced features like recurring rebalance (users can rebalance in perpetuity based on predefined logic), automation triggers based on advanced signals (moving averages, volatility indicators, etc), and zap in / zap out functionality for both principal liquidity and fees which allow users to create stop loss / take profit positions and will also allow users to more easily use LPing as a means of accruing an alt-coin they are bullish on (i.e. they can perpetually zap out all fee revenue to $ARB). 

Recurring rebalance strategies are currently only reserved for ALM protocol vaults who have in house devs or for large on-chain market makers who can afford an in house team of devs. Aperture’s solution will democratize the playing field for less equipped LPs who have a strong thesis on how to earn fees in a given pool by providing tightly concentrated liquidity that frequently rebalances. 

Automation triggers based on advance signals will allow for LPs to create entirely new rebalancing strategies based on advanced signals. 

Zap functionality will greatly reduce the friction for small LPs to begin their journey or for large LPs to create safety rails (like a stop loss).  

**Analytics Tooling:**

In the V2 Aperture seeks to give LPs on Arbitrum a comprehensive advanced analytics suite that sits right within their liquidity management interface. Users will get info on PnL, IL, LVR, HODL comparisons as well as a breakdown for their wallet level, chain level, and pool level performance. 

Proper analytics and accounting can help unlock more institutional capital which is often bottle-necked by subpar reporting. 

**Research Tooling:**

Aperture also plans to give Arbitrum LPs the first ever institutional grade back tester that utilizes event logs / tick level data in lieu of the less accurate hourly snapshot method. Large institutional LPs and ALM protocols all use the more data and compute intensive event log method for back testing. When compared to actual results the hourly snapshot method is often 40-50% off whereas the event log back test results are typically within 1-2% of the actual yield.  

By providing this data to Arbitrum LPs we will enable more LPs large and small to begin providing liquidity with greater confidence.