Concentrate your Liquidity in the Bull or Bear Market Without Much risk and More
Trade BTC, ETH, AVAX and other top cryptocurrencies with up to 30x leverage directly from your wallet (& save on fees using our link HERE)
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DeFi Slate Fam:
One of the biggest downfalls to DeFi in the last couple years has been the LP experience on DEXs…many participants have lost money from Impermanent Loss (IL).
IL happens when the two tokens move in a divergent way thus causing rebalancing to maintain the 50:50 ratio…and not to mention, its tough to hedge a bear market while in a volatile AMM pair.
Maverick Protocol has a solution, building with the idea of Uniswap V3 in mind (but not atop Uniswap), they have created a novel design to allow users to bet directionally with their LP position.
Effectively, you can concentrate your liquidity in the bull or bear direction and be paid more if you’re right and not necessarily lose dramatically more if you’re wrong.
I spoke with Bob, a Phd and total wiz, about the ins and outs of this dynamic liquidity provision product. Very interesting stuff here in the depths of the bear market.
Cheers,
Andy
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