A case study on 398 days of Uniswap v3 stablecoin market making on Arbitrum as of September 4, 2025.
This report is aimed at showing other metrics and impacts — not LP profitability — but for the record: the average return for LPs was around 11.5% for the whole period.
We were doing it self-custodially, meaning we didn’t want to accept more deposits for legal reasons. We only made it available to whitelisted investors in September 2025.
DAMMstable is an algorithmic stablecoin liquidity provision fund designed to generate risk-adjusted returns while strengthening the health of decentralized finance (DeFi) ecosystems. Beyond investor performance, DAMMstable plays a critical role in deepening and improving the efficiency of liquidity across stablecoin pairs.
This report analyzes how DAMMstable has contributed to the DeFi ecosystem over its 398-day track record, initially as a custodial fund and more recently as a decentralized Lagoon fund. The fund has operated in three 0.01% fee pools on Uniswap v3:
A key measure of DAMMstable’s contribution is how efficiently it provides liquidity relative to its share of pool TVL.