The LB design incorporates concentrated liquidity, akin to how Uniswap v3 (Uni v3) works, that enhances...In contrast, Trader Joe’s v2 Liquidity Book is a concentrated liquidity DEX similar to Uniswap v3 but...Liquidity Book: Design Differences Although both protocols employ concentrated liquidity, they differ...

Trader Joe recently launched v2 of its decentralized exchange (DEX), called Liquidity Book (LB)....The LB design incorporates concentrated liquidity, akin to how Uniswap v3 (Uni v3) works, that enhances...capital efficiency for liquidity providers (LPs) and reduces slippage for traders.

The concept came to be known as “concentrated liquidity,” as it effectively allowed LPs to compress their...Curve v2 also relies on concentrated liquidity....The benefit of concentrated liquidity is that it allows LPs to express a specific view on the market.

Liquidity Drives Markets We’ve likened the crypto market to one of the most levered bets on global liquidity...Usually when people hear “liquidity”, they think of market liquidity, or the ability to buy and sell...When we refer to “global liquidity”, we’re talking about funding liquidity, which is private sector access...

The BlackHoleSwap’s whitepaper and its “Unlimited Liquidity” claims have made its rounds over Twitter...Real liquidity is the actual deposits in the pool, and the virtual liquidity is the deposits that can...The shaded area below the line is the “virtual” liquidity....real USDC liquidity, but the “same” amount of “virtual” liquidity remains.

Lido Finance, a liquid staking derivative platform, offers a solution....As seen above, Lido has gained significant traction on its liquid staking products, stETH and bLuna,...Liquidity begets more liquidity, as many users will rationally opt for the most liquid and integrated...

Data Digest Top pairs on Uniswap v3 Most liquid tokens on Uniswap v3 Top 100 DOGE addresses own 70%...Key Takeaways The top tokens by liquidity are no surprise either, with ETH, WBTC, UNI, and the top stablecoins...Uniswap’s liquidity is no longer a direct indicator of trade efficiency and slippage, as noted by founder...

...of liquidity and volume conditions within markets....What exactly is liquidity?...In reality, market liquidity is really driven by demand....Now that we’ve touched on what liquidity is and what determines liquidity conditions, where does BTC...It’s liquidity that moves markets.”  ...

This underscores the substantial impact of JIT liquidity on LPs, as it selectively contributes liquidity...The introduction of concentrated liquidity in Uniswap v3 was a 0 to 1 moment for AMMs, but the design...Liquidity to settle trades can be sourced from on-chain liquidity venues like Uniswap or other DEXs,...on on-chain liquidity.

📊 Total Liquidity Processed by Solana Plummets The daily total liquidity processed by Solana is...Solana averaged $32.9B per day of total liquidity processed from the beginning of October until the FTX...Most of the liquidity processed consists of transactions involving SOL, USDC, USDT, ETH, and SRM.

So, what are liquid staking tokens?...In the long run, we would expect dominant liquid staking tokens to emerge, as the more liquidity and...Solana Foundation to “spread the stake among the long tail of high-performance, low-commission, non-concentrated...Due to Solana’s architecture there is more competition with AMM’s and we are seeing a lot of concentrated...

This led to the subsequent advent of the concentrated liquidity AMM under Uniswap v3....Instead of simply passively supplying liquidity, LPs now provided liquidity at specific “price ticks”...Accordingly, the concentrated liquidity model began to look more “order-book-like”....Enter Elixir Elixir enables anyone to provide order-book liquidity.

To increase accessibility to staking and liquidity, liquid staking protocols like Lido and Rocket Pool...However, because two liquidity pools are required, this results in segmented liquidity and potentially...When using frxETH to provide liquidity, liquidity providers do not earn beacon chain yields from staked...

Meanwhile, since communication across chains is inherently intermittent, overall liquidity starts to...As a result, cross-chain liquidity solutions become more important than ever....Centralized Off-Chain As sad as it may sound, the first generation of cross-chain liquidity solutions...

🔍 The ETH Liquid Staking Derivative Wars To stake ETH, users have to run validator nodes on Ethereum...Fear not, for they can also stake ETH by simply buying a token issued by one of the many liquid staking...The narrative of liquid staking is out in full force as we inch closer to the Shanghai upgrade.

The problem arises when variable liquidity turns into rapidly deteriorating liquidity during the precise...Liquidity Cascades: Putting it All Together Liquidity cascades have become a more frequent market phenomenon...There is a severe dislocation in liquidity needed versus net available liquidity in times of stress,...Liquidity cascades. ...

Liquidity Thoughts – Part II For those who are already familiar with market liquidity and key market...amount of transaction costs, including the least amount of slippage, hence why trading activity tends to concentrate...and providing liquidity again!)....We’ve mentioned liquidations and liquidation events, so what are they?

Hodlnaut, Singapore-based crypto lending platform, halted withdrawals and token swaps amid liquidity...⚡ Liquidity Runs The World Global liquidity is very pro-cyclical....When liquidity is abundant, it reduces systemic risks and the immediate need for liquid safe assets.