What exactly is concentrated liquidity.

13 Dec 2023, 10:54
What exactly is concentrated liquidity? Understanding how concentrated liquidity can provide higher returns, higher efficiencies, and DEEP liquidity. A ๐Ÿงต on the latest generation of AMMs.

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SteakHut Finance
SteakHut FinanceSTEAK #4293
Twitter
13 Dec 2023, 10:54
SteakHut Liquidity V2 will introduce a next-generation liquidity management platform. ๐Ÿ–๏ธ Automated concentrated liquidity ๐Ÿฆ Permissionless strategy creation ๐ŸŒŽ Manage liquidity across AMMs in just a few clicks ๐Ÿค‘ Create strategies to earn performance fees
SteakHut Liquidity V2 will introduce a next-generation liquidity management platform. Automated concentrated liquidity.
SteakHut Liquidity V2 will introduce a next-generation liquidity management platform. ๐Ÿ–๏ธ Automated concentrated liquidity ๐Ÿฆ Permissionless strategy creation ๐ŸŒŽ Manage liquidity across AMMs in just a few clicks ๐Ÿค‘ Create strategies to earn performance fees
SteakHut Finance
SteakHut FinanceSTEAK #4293
Twitter
13 Dec 2023, 10:54
Concentrated liquidity can be a lot more challenging for liquidity providers and protocols. Concentrated liquidity requires more complex management, requiring the need for ideal price ranges, distributions, and rebalancing.
Concentrated liquidity can be a lot more challenging for liquidity providers and protocols.
Concentrated liquidity can be a lot more challenging for liquidity providers and protocols. Concentrated liquidity requires more complex management, requiring the need for ideal price ranges, distributions, and rebalancing.
SteakHut Finance
SteakHut FinanceSTEAK #4293
Twitter
13 Dec 2023, 10:54
Traditional AMMs are very capital-heavy, requiring large amounts of TVL to facilitate swaps. Increased capital efficiencies allow concentrated AMMs to facilitate higher volumes with far less TVL required.
Traditional AMMs are very capital-heavy, requiring large amounts of TVL to facilitate swaps.
Traditional AMMs are very capital-heavy, requiring large amounts of TVL to facilitate swaps. Increased capital efficiencies allow concentrated AMMs to facilitate higher volumes with far less TVL required.
SteakHut Finance
SteakHut FinanceSTEAK #4293
Twitter
13 Dec 2023, 10:54
Concentrated liquidity allows liquidity providers to allocate capital to closed intervals of an asset's price range. Instead of supplying liquidity from 0-โˆž you can instead concentrate your liquidity around the price where it is needed.
Concentrated liquidity allows liquidity providers to allocate capital to closed intervals of an asset's price range.
Concentrated liquidity allows liquidity providers to allocate capital to closed intervals of an asset's price range. Instead of supplying liquidity from 0-โˆž you can instead concentrate your liquidity around the price where it is needed.
SteakHut Finance
SteakHut FinanceSTEAK #4293
Twitter
13 Dec 2023, 10:54
The concept of concentrated liquidity was popularized by @Uniswap V3 in 2021. In traditional models, LPs are limited to supplying liquidity to the entire bonding curve, from a price range of 0-โˆž. This means that a majority of the supplied liquidity may never actually be used.
The concept of concentrated liquidity was popularized by @Uniswap V3 in 2021.
The concept of concentrated liquidity was popularized by @Uniswap V3 in 2021. In traditional models, LPs are limited to supplying liquidity to the entire bonding curve, from a price range of 0-โˆž. This means that a majority of the supplied liquidity may never actually be used.