Monthly Recap - October '23

Introduction

October was an exciting month for GammaSwap.

After years of research on CFMMs and testing of the contracts, the core team launched our first official mainnet deployment on Arbitrum at the end of September and through the middle of October.

Protocol Traction & Updates 🌱

The market was fairly choppy with a decent sized rally in the majors at the end of the month: $BTC, $ETH and of course $ARB ahead of the upcoming STIP.

This saw some strong activity from traders looking to take advantage of Impermanent Gain.

Here are some quick stats:

• ATH TVL of 783k
• $1.64M in Total Loan Volume
• Utilization in major pools (ARB/ETH & ETH/USDC) averaged ~50%
• Daily loan volume of ~100k

Although the usage is not massive yet, we were excited by the traction we received during our “soft launch” with permissioned pools, conservative LTVs and no token incentives. Our approach is slow measured but it will help set the foundation for sustainable growth when we launch a full deployment of GammaSwap.

Another issue of course both from a user acquisition perspective and for security is that the ability to borrow liquidity from an AMM has never existed before. GammaSwap is pioneering this new category on canonical Uniswap V2 style AMMs.

Unfortunately, on October 10th we did receive a report from a whitehat on ImmuneFi regarding a potential vulnerability with the protocol. We verified the issue overnight and paused the contracts once the bug was confirmed by the core team.

Most Importantly: No funds were lost & no funds are currently at risk

Solvency of the protocol is incredibly important to us. Given the novel nature of GammaSwap, we were aware new types of vulnerabilities could occur. For context, the smart contracts were audited 5 times before launching and this bug was missed throughout all of those audits.

The core team has fixed the vulnerability, the whitehat has verified the fix and now we’re currently in the process of re-auditing with Zellic.

A full post-mortem report will be coming soon.

UI Updates ✨

• Swap interface to trade spot assets
• Permissionless pool creation & discovery using the Subgraph
• CMDK navigation bar to search any pool with keyboard shortcuts
• Sort by TVL or Supply APY
• In the process of building a UI for $GS staking and liquidity mining

These UI updates will be included in our upcoming redeployment.

Smart Contract Updates 🛠️

• Fixed the vulnerability identified by ImmuneFi
• Beginning a re-audit of the bug fix with Zellic
• Audit for DeltaSwap completed, the first feeless swap AMM
• Staking contracts finished their audit at the end of the month

Wrapping up October

October was exciting because we were seeing growth across all relevant metrics: TVL, trading volume, etc.

We received the alert from ImmuneFi and now we are at the tail end of finalizing the contract changes. The development team has also been heads down pushing on other impactful updates: DeltaSwap, Staking UI, TGE, etc.

We are excited to come back from this even stronger — as a robust protocol with improved functionality and a larger set of products available for our users.

Thank you as always for the support Gamma Gang 🙏