H火星财经 reports that Uniswap founder Hayden posted on X that the technical design for auto-compounding liquidity is his personal contribution to pools.trade. The mechanism works as follows: liquidity positions are deposited into a smart contract with the rule that anyone can claim all accrued but uncollected fees from the position, provided they increase the size of the liquidity position by 0.2%. As a result, fees accumulate over time, and when their value exceeds 0.2% of the liquidity, searchers are naturally incentivized to add 0.2% more liquidity and claim the fees. This mechanism is based on Uniswap’s token jar and can also be applied to auto-compound standard Uniswap LP positions, so the feature will be added to the roadmap.
Uniswap Founder Develops Automatic Compounding Liquidity Mechanism for LP Positions
MarsBitShare
Summary
Uniswap founder Hayden shared on-chain news about a new automatic compounding liquidity mechanism for LP positions. The design enables liquidity to be deposited into a smart contract, where fees can be claimed when liquidity increases by 0.2%. This mechanism is inspired by the Uniswap token jar and will be integrated into the roadmap for standard LP positions. The project is connected to new token listings on pools.trade.
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