Overview
Arrakis Finance (formerly G-UNI, incubated by Gelato Network) is a liquidity management protocol that provides automated concentrated liquidity solutions primarily for protocols and DAOs. While Gamma Strategies targets retail LPs, Arrakis has increasingly focused on the B2B use case: helping protocols manage their treasury liquidity and incentivize on-chain trading pairs efficiently.
The protocol evolved from G-UNI (Gelato Uniswap), which provided simple Uniswap V3 position management. Arrakis V2 introduced a more sophisticated modular architecture with pluggable strategy modules, MEV-aware rebalancing, and customizable vault configurations. The name references the planet Arrakis from Dune, with liquidity metaphorically compared to "the spice."
Arrakis manages liquidity for notable DeFi protocols including MakerDAO, Lido, and others who need deep on-chain liquidity for their tokens. The B2B focus provides a differentiated market position but limits retail user adoption compared to more accessible competitors.
Smart Contracts
Modular Vault Architecture (V2)
Arrakis V2 uses a modular vault system where the core vault contract handles deposits, withdrawals, and accounting, while pluggable strategy modules handle the actual liquidity management logic. This separation allows different strategies to be applied to different vaults without modifying the core infrastructure.
MEV-Aware Strategies
Arrakis has developed MEV-aware rebalancing strategies that minimize value extraction by MEV bots during vault rebalancing. When vaults adjust their liquidity ranges, the transactions are structured to reduce sandwich attack opportunities. This is a meaningful differentiator, as naive rebalancing can leak significant value to MEV.
Off-Chain Strategy Computation
Strategy decisions (when to rebalance, what ranges to use) are computed off-chain and executed through on-chain keepers. The vault contracts enforce safety constraints (slippage limits, range bounds, authorized executors) to prevent malicious rebalancing.
Security
Audit History
Arrakis V2 has been audited by Statemind and other security firms. The modular architecture requires auditing both the core vault logic and each strategy module independently. Gelato Network's infrastructure provides the keeper execution layer.
Gelato Dependency
Arrakis's operational infrastructure depends on Gelato Network for automated execution. While Gelato is a reputable automation protocol, this creates a dependency on external infrastructure. Gelato downtime or issues could affect vault rebalancing.
Track Record
Arrakis has operated without a major exploit since its G-UNI days. The protocol has managed meaningful TVL for major DeFi protocols without incident. The clean track record across multiple years and protocol iterations is positive.
Yield Generation
Protocol Liquidity Optimization
For protocols using Arrakis to manage their token liquidity, the value proposition is efficient capital deployment — maintaining deep on-chain liquidity with less capital than naive full-range positions. The yield comes from trading fees on the managed positions plus capital efficiency gains.
Strategy Performance
Arrakis's MEV-aware strategies aim to minimize rebalancing costs, improving net yield for vault depositors. Performance varies by strategy and market conditions, but the MEV protection provides a consistent edge over naive rebalancing approaches.
B2B Focus Limits Retail Yield
Arrakis's focus on protocol liquidity management means retail yield opportunities are more limited than on Gamma Strategies. Individual users can deposit into Arrakis vaults, but the product is optimized for protocol treasury management rather than individual LP yield farming.
Adoption
Protocol Clients
Arrakis manages liquidity for notable DeFi protocols, providing a blue-chip client list. These B2B relationships provide stable, long-term TVL less susceptible to farming-driven capital rotation.
Moderate TVL
Arrakis's TVL is meaningful but smaller than Gamma's, reflecting the narrower B2B focus. The protocol manages hundreds of millions across its vault deployments, primarily on Ethereum and major L2s.
Developer Ecosystem
Arrakis's modular architecture has attracted developers building custom strategy modules. The protocol aims to become a platform where third-party strategists can deploy and monetize liquidity strategies.
Tokenomics
No Public Token
As of early 2026, Arrakis has not launched a public governance token. The protocol operates without token-based incentives, relying on B2B relationships and organic yield to attract TVL. A future token launch is expected but details are limited.
Revenue Model
Arrakis earns management and performance fees on vault TVL. The B2B model provides relatively stable revenue from protocol clients, though total revenue depends on managed TVL growth.
Risk Factors
- Gelato dependency: Operational reliance on Gelato Network for execution creates infrastructure risk.
- B2B concentration: Revenue and TVL depend on a limited number of protocol clients.
- Keeper centralization: Off-chain strategy computation and execution are centralized.
- No token incentives: Without a token, Arrakis cannot bootstrap TVL through emission programs.
- Competition: Gamma Strategies and other liquidity managers compete for managed TVL.
- Strategy risk: MEV-aware strategies, while innovative, introduce complexity that could harbor edge-case vulnerabilities.
Conclusion
Arrakis Finance occupies a distinct niche in the liquidity management space: protocol-grade, MEV-aware concentrated liquidity management. The B2B focus on serving DeFi protocols and DAOs differentiates Arrakis from retail-focused competitors, and the modular V2 architecture demonstrates strong engineering. For protocols needing efficient on-chain liquidity, Arrakis is a sophisticated option.
The 5.6 score reflects solid technical foundations and meaningful B2B adoption, constrained by limited retail appeal, no public token, and the narrower market addressed by the B2B model. Arrakis's value proposition is clear but niche — protocol liquidity management is important but addresses a smaller market than broad retail LP yield optimization.