Introducing Bella Virtuoso — Next Phase of Bella Protocol

6 min readNov 1, 2021

Executive summary

DeFi asset management is getting more complex, demanding a more diverse range of asset management products.
Though a game-changer, Uniswap v3 has a higher user barrier for active liquidity provision, gas fee, and impermanent loss.
We are envisioning Bella Virtuoso, a permissionless quantitative strategy platform built upon Uniswap v3 to connect strategists and investors.
We built the Tuner Simulator for Uniswap v3, the most robust simulator for strategy modeling and backtesting.
Bella roadmap update: plans for the road ahead.
Virtuoso’s first step — Tuner Simulator, is live via Github: https://github.com/Bella-DeFinTech/uniswap-v3-simulator

What We Accomplished in 2020 and 2021

This year has been fantastic for all of us at Bella.

In February, we launched Bella Flex Savings v2 that comes with an earnings strategy implemented on Curve.fi alongside other protocols with secure and high return. In this new version, all returns are automatically reinvested into underlying protocols to compound returns. Besides, Flex Savings v2 also has a vesting period and a reward multiplier mechanism, generating such a high yield that’s rarely seen in the industry.

As we give security the highest priority, we partnered with leading security firms such as PeckShield that put the codes of Flex Saving through rigorous testing to ensure they are safe and sound. Although there is always room for some errors and vulnerabilities, we are proud to say that we upheld the standard of a multi-million-dollar-handling DeFi product and Flex Savings has been smoothly and successfully running for more than six months. Its TVL is about to reach 30 million with APY as high as 30%.

DeFi Asset Management is Calling for Diverse Product Offerings

2021 has been a significant year for the DeFi industry as decentralized applications and ecosystems continue to boom. The total value locked in DeFi topped $162.25 billion, hitting a new all-time high. DeFi investors have different risk tolerance levels, therefore calling for more diverse and flexible asset management products to meet their demand.

In this context, Uniswap V3 was born. It allows users to customise the price range for providing liquidity, which significantly improves the LP capital utilization rate. Despite numerous advantages, there are some notable problems.

No reference/indicator to guide the LPs when setting up the proper price range,
High gas fee for rebalancing,
Most users have limited understanding of IL between V2 and V3, LPs tend to omit the fact that the concentrated liquidity of V3 will significantly reduce the exposure while only paying attention to the high IL.

According to a research published on Nansen, only a small percentage of users are using Uniswap V3 to actively manage their liquidity. We believe for mass adoption of Uniswap v3, there need to be strategy aggregation platforms to connect quant strategy developers with investors with limited technical knowledge.

Bella will tackle this issue with a new solution — Bella Virtuoso, a permissionless LP strategy platform with Tuner Simulator for Uniswap v3 built-in.

Introducing Bella Virtuoso: Next Phase of Bella Protocol

Bella Virtuoso is a permissionless DeFi asset management platform that connects investors with the best LP strategies on Uniswap v3. The idea is to provide an inclusive solution for every type of investor and celebrate the wisdom of quant strategy composers. Bella Virtuoso lets you compose and invest in the strategies you deserve.

Why “Virtuoso”?

Financial instruments are not just about money. They are about a chance to align your investment goals with your financial realities. To reach your goals, it’s better if there’s a Virtuoso, a wizard or expert, of financial instruments to compose for you a fit strategy.

This is what Bella Virtuoso does. We celebrate talented strategy composers, and we set our hearts on connecting strategies with befitting investors. In this way, strategists can share LP profit, at the same time investors can participate in suitable strategies for their risk appetite with just one click.

Who did we build Bella Virtuoso for?

Strategy builders

We would like to attract professional traders and DeFi strategists to build their strategies. Bella Virtuoso presents talented quant strategists to a wider investor audience and allows them to earn a commission from the profit generated.

Virtuoso’s first step — Tuner Simulator, is live via Github: https://github.com/Bella-DeFinTech/uniswap-v3-simulator

Investors

Bella Virtuoso will have several different investment strategies with various risk appetites for investors of all kinds. Bella has always believed in the right of all people to have access to premium financial products, and Bella Virtuoso is another step toward that belief.

“We are more bullish on the future of DeFi than ever.” says T, “Everyone will be able to have fair access to premier asset management services. Uniswap v3 offers a phenomenal tool to increase capital efficiency. By building Bella Virtuoso, we are leveraging the wisdom of community quant developers to help investors truly tap in the capital-efficiency and flexibility of Uniswap v3. Bella Virtuoso is 100% aligned with our vision to lower the user barrier for DeFi.”

Roadmap

2021 Q4: Tuner Simulator for Uniswap V3

Tuner, a programmatic Uniswap V3 simulator allows strategy builders to backtest their strategies with mainnet data. Tuner simulator runs independently with high-fidelity that completely reproduces the intricate design and implementation of Uniswap V3, on a transaction-by-transaction basis without EVM. Tuner Simulator is fundamentally a state machine, it can fast-forward and rewind transactions and take or recover from a snapshot. The strategists can do advanced statistical analysis in real-time in a flexible way. The purpose of the Tuner Simulator is for the strategists to run near-to-perfect backtesting with on-chain historical data.

Virtuoso’s first step — Tuner Simulator, is live via Github: https://github.com/Bella-DeFinTech/uniswap-v3-simulator

2022 Q1: Strategy Bot

Liquidity provision strategy execution bots that utilize statistical models to automatically adjust the price range of concentrated liquidity for maximizing capital efficiencies. This will allow investors to save themselves the time and gas fee of manually changing the price range to maximise the fund’s utilization rate.

2022 Q2-Q3: Bella Virtuoso

We are envisioning Bella Virtuoso as a platform to connect, educate and curate quant strategies. Both investors and quant strategists can benefit from Bella Virtuoso. The platform will also integrate automated backtesting features to facilitate the strategy-building process.

Goals

Permissionless strategy creation and listing on Bella Virtuoso by any strategy composers
Smart contract based fund management system that safeguards user fund
Visualization of past performance, backtesting historicals, and metrics such as Sharpe Ratio and Sortino Ratio
Elegant user interface and simplified user experience for choosing LP strategy
Easy-to-deploy strategy templates and combinations for strategy composers

Challenges

Open source or not? The strategies are usually trade secrets in the traditional finance world, since the performance of a strategy degrades and eventually the strategy becomes obsolete when more and more people are using it. We are still in the design phase to decide how to manage the strategies in a decentralized and permissionless context.
How can the centralized strategy bot be permissionless? Since the smart contracts are always passively triggered, an active bot which has the ability to execute strategies based on data analysis and mathematical models can only be deployed and hosted centrally. We are still trying to figure out the best way to provide a neutral platform where the users have the ultimate control over their funds and strategies while making the setup much more intuitive and smooth.
More creators and engineers. To present the idea in the form of a product as soon as possible requires a lot of designs and engineering, and we would love to see more collaborators who have deep understanding of/are willing to learn about EVMs, Uniswap v3 and DeFi to join us.

We are calling volunteers and quant strategy composers to contribute to the platform idea.

We are hiring

We are looking for software engineers and operation talents to join us on this fantastic adventure. If you are a virtuoso of the DeFi world and have potentials that are yet to unleash, contact us at contact@bella.fi.

About Bella

Bella Protocol is a suite of open finance products that aims to bring mass adoption to DeFi asset management. Bella’s first yield product, Flex Savings v2 is live on Ethereum with $40 million TVL. Bella’s core team is creating Bella Virtuoso, a permissionless strategy platform that connects investors with the best LP strategies on Uniswap V3. Bella Virtuoso also comes with built-in backtesting tools and data infrastructure for strategy builders.

Bella Protocol is backed by Binance Labs and Arrington XRP Capital and several other renowned investors. BEL token is supported on Binance, Bithumb and other major exchanges.

Bella’s core team consists of serial entrepreneurs and blockchain veterans who have tremendous experience and a proven track record in finance, cryptography, blockchain, and engineering.

For more information about Bella, or to join our team, please contact us at contact@bella.fi

Learn about Bella’s recent official news：

Medium: https://medium.com/@Bellaofficial

Twitter: @BellaProtocol

Telegram: https://t.me/bellaprotocol

Discord: https://discord.gg/JamMH5P