Why do we adopt this centralized liquidity market-making scheme on stablecoin trading pairs? The key lies in three aspects. First, a more compact price range allows for full utilization of capital, maximizing the effectiveness of each liquidity provision. Second, liquidity providers gain true control—precisely set positions and flexible strategy adjustments. Finally, this design significantly improves trading efficiency and creates a better experience for ecosystem participants.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
9 Likes
Reward
9
8
Repost
Share
Comment
0/400
RektRecorder
· 9h ago
Damn, this set of concentrated liquidity is really well understood, maximizing capital utilization.
View OriginalReply0
SeeYouInFourYears
· 22h ago
The concept of concentrated liquidity sounds good, but how many LPs actually make money? Most people are still being hit hard by slippage and impermanent loss.
View OriginalReply0
probably_nothing_anon
· 22h ago
Concentrated liquidity, in simple terms, gives LPs a say and finally frees them from being passively manipulated. I really respect how they maximize capital efficiency.
View OriginalReply0
GasGuzzler
· 23h ago
Concentrated liquidity, to put it simply, gives LPs a say and no longer leaves them passive victims. Capital efficiency doubles, trading pairs become smoother, and this is the way it should be.
View OriginalReply0
LightningSentry
· 23h ago
The concentrated liquidity system is indeed quite interesting... Maximizing capital utilization, LPs can also manage their own trades, just need to keep a close eye so they don't get hit by slippage.
View OriginalReply0
BankruptWorker
· 23h ago
The concept of concentrated liquidity sounds good, but I'm worried that a wave of extreme market conditions could blow up the position. Can LP really have control over it?
View OriginalReply0
SnapshotLaborer
· 23h ago
That's right, concentrating liquidity definitely saves money, but the provider's operations are too complicated, and I'm worried that ordinary people might not be able to handle it.
View OriginalReply0
GasOptimizer
· 23h ago
The concentrated liquidity gameplay, to put it simply, is about putting your money where it counts... But it seems that most LPs still don't quite understand how to tune the parameters haha
Why do we adopt this centralized liquidity market-making scheme on stablecoin trading pairs? The key lies in three aspects. First, a more compact price range allows for full utilization of capital, maximizing the effectiveness of each liquidity provision. Second, liquidity providers gain true control—precisely set positions and flexible strategy adjustments. Finally, this design significantly improves trading efficiency and creates a better experience for ecosystem participants.