ARMSys
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The vol-adaptive Uni v4 Hook turning toxic flow into LP profit.
https://armsys.xyz/
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Hi everyone, this is ARMSys. 🛡️

Our mission is to help LPs combat Loss-Versus-Rebalancing (LVR) — the situation where liquidity providers become prey to toxic flow and extreme market volatility.

How we do it: We don't predict prices. Instead, by analyzing the price stream, ARMSys identifies periods when price action is likely to lead to significant LVR. We then give LPs a strategic choice: either stay out of the trade or make your liquidity expensive for those looking to exploit it.

All of this is executed fully on-chain using Uniswap v4 hooks.
Predicting market regimes: LVR mitigation with the Parkinson Model

In DeFi, liquidity providers often face Loss-Versus-Rebalancing (LVR) because volatility spikes are detected too late. Standard close-to-close models frequently miss intraday turbulence.

Our latest analytics report explores the Parkinson Method, a volatility estimator that captures the price range (High and Low) of every period.

Key advantages:

Sensitivity: Higher precision than classical models.

Efficiency: Achieves accuracy with less data.

Real-time: Essential for dynamic fee adjustments.

Read the full analysis, including the mathematical breakdown and risk percentile tables at our website.

armsys.xyz/analytics/lvr-reduction-parkinson-volatility-model
High Risk Mode Activated // https://armsys.xyz/data
Big milestone for ARMSys: We’re officially joining the Uniswap Hook Incubator (UHI9)! 🦄

We are building execution-level guards for Uniswap v4 to protect LPs from LVR using gamma rebalancing hooks. Honored that the team highlighted our approach to acceleration-based price movements.

Next stop: shipping this on base at ETHGlobal Cannes! 🇫🇷
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ARMSys is heading to ETHGlobal Cannes! 🇫🇷🌊

We’re excited to build and demo our Uniswap v4 protective hooks in person. Our mission is clear: eliminating the $1B+ LVR leak for LPs through math-driven, execution-level guards. 🛡️📈

See you on the Riviera! ⚓️
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Why build on base?

We just deployed the ARMSys v4 hook to Mainnet, and the gas fee was... 0.0000079 ETH.

Yes, you read that right. Fractions of a cent to deploy institutional-grade LVR protection. High-math, low-cost.

Stay tuned: Alpha version with a fresh UX/UI is dropping in just a few days!
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ARMSys Mainnet Alpha drops on base in just a few days! 🛠️🔵 Help us calibrate the next standard in LVR protection.
Our Uniswap v4 hooks are already on-chain, and the math is alive—check the real-time volatility regimes live on our website now. 📈
We’re opening 5 exclusive spots for Strategic Design Partners (DAOs, Funds, Pro LPs).
Shape the risk-management layer of Uni v4 with us. DM now!
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🚨 The Devil in the Details: Why traditional volatility models are failing ETH LPs If you are providing liquidity in DeFi, you need to understand the math behind your risk. We took a deep dive into the classic Parkinson volatility formula and tested it against actual $ETH hourly prices from 2021 to early 2026.Here is what we found:The market is structurally abnormal: ETH doesn't follow a smooth random walk (Brownian motion). It’s driven by "fat tails" and extreme kurtosis.Risk is regime-based: A tiny fraction of hours carries a disproportionately massive threat due to sharp price acceleration—the true driver of gamma risk.The standard math is off: Using the theoretical Geometric Brownian Motion constant underestimates ETH's true volatility by approximately 2.3%.The Solution:
We derived a custom empirical constant specifically for ETH and integrated it directly into our hook. This allows the protocol to dynamically adjust: maximizing yield for LPs in safe zones and aggressively protecting liquidity when the market breaks structure.📊 Read the full breakdown and see the statistical proof for yourself: https://armsys.xyz/analytics/devil-in-the-details-eth-parkinson-coefficient
🟢 ARMSys v0.1.0 Alpha is officially LIVE on base Mainnet for Uniswap v4!
We’re pioneering "Conditional Liquidity" — an oracle-free, pre-swap execution guard (< 500 gas) that acts as a 4-state circuit breaker to kill LVR.
🦄 Incoming Uniswap Hook Incubator (UHI9)

Check out ETH / USDC https://app.uniswap.org/explore/pools/base/0x869f531c5fd931e9e3cc7ff5f8f1323c182c12f2cc83a4175e8422070cf199b4?utm_source=share-pool&utm_medium=web
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We've rolled out a massive update for our Uniswap v4 smart contract. Protecting pools from LVR (Loss Versus Rebalancing) and MEV bots just got smarter, and Liquidity Providers (LPs) can now maximize their profits.

What's new under the hood:
💧 Waterfall Decay Algorithm. We taught the smart contract the concept of time. Now, after a sharp volatility spike, the pool doesn't get "stuck" in defense mode forever. The alert level smoothly decreases via a timer. This means less friction for regular traders while maintaining an ironclad trap for bots.
💸 Optimized Fee Logic. We refined the Parkinson math and the two-tier fee system. Whitelisted traffic (Retail) always trades with minimal costs, while toxic flow from aggressive arbitrage pays penalties of up to 25%—which settle directly into the pool.

We are literally taking profit from MEV bots and giving it back to liquidity providers.

📖 The full breakdown of the math, architecture, and dynamic fee matrix is already available in our Docs https://armsys.xyz/
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Weekend building mode: ON 🛠️

We’ve just leveled up the ARMSys UI on our website! Now you can track more than just Ethereum’s volatility regime.

Monitor in real-time:

ETH Volatility Regime (Parkinson model)
Hook Fee Accrual Regime — see exactly how your LP fees are being collected right now.

Full transparency for LVR protection. Check the pool on Uniswap: https://app.uniswap.org/explore/pools/base/0x78e451402d20253117fedff54c1ddd2a270edb48d552532b4148a27e190d3d02?utm_source=share-pool&utm_medium=web
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The AI agent economy is real, and we just unleashed an apex predator. 🩸 armsquant is officially live on Moltbook. It autonomously hunts for idle ETH, speaks multiple languages, and redirects liquidity to our Uniswap v4 pool by offering math-backed protection against MEV and LVR.
See the UHI9 alpha in action: https://www.moltbook.com/u/armsquant
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Our ARMSys AI Agent has officially dropped its first post on X! This isn't just a bot—it’s the autonomous brain behind our risk management engine, and it’s here to change the game.


What will the Agent be doing?

Real-time LVR Neutralization: Explaining how we detect and block toxic arbitrage intra-block.

Live Performance Data: Sharing yield and protection metrics from our Uniswap v4 hook on Base.

Autonomous Growth: Actively sourcing and onboarding new LPs to our protected pools.
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Every time the market spikes, standard AMM pools catch the falling knife. LVR isn't a bug; it's a mathematical certainty when you don't price volatility correctly.

We just published a new article on how ARMSys is solving this at the execution level.

Our Uniswap v4 hook uses an oracle-less, intra-block volatility engine to dynamically trigger price discrimination. Retail gets fair prices, while MEV bots get hit with up to a 25% "Fatality Fee." Toxic flow either gets blocked or pays a massive premium directly into the pockets of LPs.

Dive into the architecture of delta-neutral liquidity: https://armsys.xyz/analytics/evolution-of-liquidity-delta-neutral
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ARMSys is now live on Arbitrum . We just deployed the ultimate capital-efficiency engine for USDC/USDT.

We combined our oracle-less LVR defense hook with a continuous Aave yield-routing vault.

Wait, a volatility-based risk engine for a stablecoin pair?

Yes. And here is why it's the most logical play in DeFi right now.

The Stablecoin Dilemma Providing liquidity for stable pairs like USDC/USDT has two massive flaws:

Micro-Volatility Bleed: Stablecoins aren't perfectly stable. During micro-depegs, standard AMMs lag. Toxic MEV bots snipe the pool, extracting risk-free profit from LPs block by block.

Dead Capital: In concentrated liquidity, assets outside the active trading tick sit completely idle. They earn zero fees and zero yield. It's peak capital inefficiency.

The ARMSys Solution: A Dual-Engine Architecture We deployed a uniswap v4 hook on Arbitrum that attacks both problems simultaneously at the execution level ( beforeSwap):

Engine 1: Micro-LVR Defense. Our volatility models detect micro-depegs intra-block. When toxic flow tries to exploit the spread, the hook dynamically scales the fee. We tax the arbitrageur to compensate the pool. Engine
2: The Aave Vault. What happens to the out-of-range USDC and USDT? The hook acts as an autonomous settlement layer, continuously sweeping idle liquidity into Aave.

The Result: LVR - Fee + Aave Yield = Absolute Efficiency. Your active liquidity is protected from MEV extraction, while your idle capital earns a baseline lending yield. LPs finally get a strictly superior, risk-adjusted return.

Current Status: Alpha Testing on Arbitrum. Security: Full Smart Contract Audit scheduled for this month (April 2026).


https://armsys.xyz/vault

The era of passive, bleeding liquidity is over. We are building the infrastructure that actually scales.
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The first V4 hook designed to recapture LVR (Loss Versus Rebalancing) for LPs: We are currently preparing the launch of an entirely delta-neutral pool utilizing a V4 hook on the Base network for the ETH/USDC pair. An announcement regarding the alpha test, which will include the pool address, will be released shortly.
Tomorrow, we will release a simple dashboard to showcase our model. Take this Uniswap pool with a linear 0.01% fee as an example (https://app.uniswap.org/explore/pools/ethereum/0xE0554a476A092703abdB3Ef35c80e0D76d32939F). It has excellent turnover. Our dashboard illustrates the projected LP earnings if this exact pool were powered by ARMSys mathematics. Notably, our base fee is les and equal 0.009% as the benchmark pool.
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We decided to kill the website. It didn't make any sense to keep it.