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As AMMs compete for order execution on Serum, two factors are most important:
Order volume - larger sell orders mean higher profits for LPsOrder distribution - profit is obtained only when orders are fulfilled; placing liquidity at the optimal price intervals increases usage of the LP’s fundsBy bringing concentrated "smart" liquidity to the AMM space on Solana, Cyclos embeds the intelligence of the masses within order book liquidity by allowing LPs to concentrate their funds at chosen price intervals.
Unlike other AMMs, Cyclos allows LPs to select the exact price ranges at which their liquidity is active. By creating depth of liquidity around the predicted market price of an asset, larger orders can be executed at an optimized price. Further, LPs are offered greater protection from impermanent loss. Once an asset exits the LP’s price interval, the liquidity becomes inactive. Further, LPs can place their liquidity at multiple price intervals to deploy capital even more strategically.
referencePosted on 26 Nov 2024, this text provides information on Miscellaneous in Cryptocurrency related to Cryptocurrency. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
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