Liquidity providers and backtesting engines with Algosage

Over the past few years, Decentralized Finance (DeFi) has emerged as a transformative force in the financial industry, offering users a range of new and innovative ways to access financial services. Studies show that DeFi is not just a trend or a niche but a paradigm shift in the financial system, which can change traditional finance. Removing intermediaries helps reduce costs, increase accessibility and accessibility, and improve the efficiency of financial services. DeFi technology has the potential to democratize the financial industry by giving individuals more control over their financial assets and transactions, irrespective of location, wealth, or background. However, the complexity, high volatility, technical barriers, and the steep learning curve make it difficult to enter the DeFi space for many users. Existing challenges like Impermanent Loss (IL) deter people willing to invest in the DeFi space. To tackle these issues, this paper introduces the “Algosage Backtesting Engine” - an advanced tool for backtesting investment strategies for Liquidity Providers (LPs). It compares them against the backtesting engines for Automated Market Makers (AMMs) currently in the market.