⚖️Concentrated Liquidity

Concentrated liquidity technology allows you to place your assets within a specific price range, leading to higher capital efficiency and deeper liquidity. Here's what this means:

• Price Range: You choose a range of prices where your assets will provide liquidity.

• Fee Percentage: You earn a percentage of trading fees as long as the asset's price stays within your chosen range. If the price stays within your range, you'll have higher capital efficiency.

• Adjustable Conditions: You can adjust the conditions to minimize losses from price changes.

• Compensation for Losses: Higher capital efficiency can help offset potential losses.

If you've experienced significant losses from price changes while providing liquidity on platforms like Uniswap V3, Algebra's technology can help you reduce the risk of losing your capital.

Check out this ‘Understanding Impermanent Loss (IL) on QuickSwap’s V3 ‘Concentrated Liquidity’ Mode’ article, dedicated to the way Algebra reduces the Impermanent Loss with its DeFi solutions.

This image shows how the price range changes when you select these different custom price ranges.