A case study on 398 days of Uniswap v3 stablecoin market making on Arbitrum as of September 4, 2025.

This research was conducted by DAMM Capital, all rights reserved.

1. Introduction

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:

• USDC/USDT
• USDC.e/USDT
• DAI/USDT

2. Liquidity Efficiency: Fee Multiplier Ratio

A key measure of DAMMstable’s contribution is how efficiently it provides liquidity relative to its share of pool TVL.

Methodology:

• For every position taken, calculate the % of total pool TVL represented.
• Compare it to the % of pool fees captured during the position’s lifetime.