GEMINI Project Context: Uniswap Auto CLP & Hedger

Last Updated: January 6, 2026 Project: Uniswap V3 Automated Concentrated Liquidity (CLP) & Delta-Neutral Hedger Operating System: Windows (win32)

1. Project Overview

This project is an automated high-frequency trading system designed to:

Provide Concentrated Liquidity (CLP): Automatically manages positions on Uniswap V3 and its forks (Aerodrome, PancakeSwap) to capture trading fees.
Hedge Delta Exposure: Simultaneously executes delta-neutral hedges on Hyperliquid (Perp DEX) to neutralize the price risk of the underlying assets (Impermanent Loss protection).

The system operates as a Delta-Zero Yield Farmer, effectively capturing LP fees with reduced market exposure.

2. System Architecture

The system consists of two main independent Python processes that coordinate via a shared JSON state file.

graph TD
    A[clp_manager.py] -- Reads/Writes --> C{status.json}
    B[clp_hedger.py] -- Reads --> C
    A -- On-Chain Tx --> D[EVM Chain (Base/Arb)]
    B -- API Calls --> E[Hyperliquid Perp]
    F[telegram_monitor.py] -- Reads --> C
    F -- Alerts --> G[Telegram]

Components

clp_manager.py (The Strategist):
- Role: Active Liquidity Provision on EVM chains.
- Actions: Mints new positions, monitors ranges, auto-closes out-of-range positions, collects fees, and handles auto-wrapping/swapping.
- State: Updates {TARGET_DEX}_status.json with entry price, token amounts, and range details.
clp_hedger.py (The Guardian):
- Role: Delta Neutralization on Hyperliquid.
- Actions: Calculates the LP's real-time delta. Executes short/long trades to maintain Net Delta ≈ 0.
- Features:
  - Dynamic Thresholds: Adjusts rebalance sensitivity based on market volatility (StdDev).
  - Fishing Orders: Places passive maker orders to capture spread and rebates.
  - Edge Protection: Reduces hedging logic near range edges to prevent "buying high/selling low".
clp_config.py: Centralized configuration. Uses TARGET_DEX env var to switch between profiles (e.g., UNISWAP_V3, AERODROME_BASE_CL).

3. Key Files & Directories

File/Directory	Description
`clp_manager.py`	Main entry point for the LP Manager.
`clp_hedger.py`	Main entry point for the Delta Hedger.
`clp_config.py`	Configuration profiles and strategy settings.
`requirements.txt`	Python dependencies (`web3`, `hyperliquid-python-sdk`, `dotenv`).
`doc/`	Extensive documentation (`CHANGELOG.md`, `UNISWAP_MANAGER_WORKFLOW.md`).
`florida/`	A secondary deployment or research directory containing specific strategy configurations.
`tools/`	Utility scripts (e.g., `git_agent.py`, `universal_swapper.py`).
`logs/`	Runtime logs.
*`_status.json`**	The shared state file (IPC). Specific name depends on `TARGET_DEX`.

4. Setup & Usage

Prerequisites

Python 3.10+
Hyperliquid Account & API Key (in .env)
EVM Wallet Private Key (in .env)
RPC URLs (in .env)

Installation

pip install -r requirements.txt

Configuration

Create a .env file (see .env.example in tools/).
Edit clp_config.py or set TARGET_DEX environment variable to choose a profile (e.g., AERODROME_WETH-USDC_008).

Running the System

You typically run the Manager and Hedger in separate terminals:

Terminal 1 (Manager):

python clp_manager.py

Terminal 2 (Hedger):

python clp_hedger.py

5. Recent Developments (Jan 2026)

Low Volatility Optimization: Increased base rebalance thresholds (from 5% to 8%) to reduce churn in sideways markets.
Fishing Orders: Implemented passive limit orders to profit from rebalancing.
Shadow Logging: The system now logs "Shadow" trades to simulate maker order performance vs taker execution.
Dynamic Edge Proximity: Safety buffers now scale with position size.

6. Active Context

Current Profile: The root directory contains AERODROME_WETH-USDC_008_status.json, indicating an active or recent session on Aerodrome (Base Chain).
Workflows: Refer to doc/UNISWAP_MANAGER_WORKFLOW.md for detailed state machine logic of the Manager.

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