Concentrated Liquidity

solve3 offers Concentrated liquidity (CL) allowing liquidity providers to focus their liquidity supply at specific price ranges. CL allows for higher volume and greater capital efficiency, providing for more fees for liquidity providers, but may also come with greater impermanent loss. There are several options that are best suited for different pools, depending on your needs.

Which should I choose?

Selecting a CL strategy will depend on your risk tolerance and your goals. You may wish to choose Narrow or Balanced on blue-chip tokens that will not fluctuate much in price, minimizing your impermanent loss and maximizing your fees. You may wish to choose Balanced or Wide on tokens with more flexibility such as protocol tokens, allowing for the chance of up or down swings. You may wish to choose Full Range for volatile tokens such as meme tokens, as these are suspect to large price swings. You may also choose to create your own profile and edit your ranges, recommended for expert traders.

Automated Liquidity Management (ALM)

If you are unsure which strategy to choose you may use an ALM to manage your position for you. The ALM will come with a fee and may reduce your earnings but will be positioned to update your ranges automatically. ALM options will be available post-launch.