Guys, I've been researching this for a year Megapools with concentrated

liquidity

Check out the manifesto and let us know: SHOULD WE BUILD THIS??

https://twitter.com/vlzhr/status/1853128381434298819

3 ответов

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The main problem is that the project owners themselves do not provide liquidity for sustainability

And this system shows itself well since we have been testing for another half a year )))

I personally dont like concentrated liquidity. Because each time you have to reallocate your position, your impermanent loss becomes permanent. And during volatile times you have to check your positions more or less daily. While those pools easily earn fees with 100%+ apy most times it is not enough to counter the huge IL. In most cases it is way too complicated for normal users and not worth the time and work. And if you think about it: in the end it is nothing other than automated swing trading where you buy high and sell low to earn trading fees lol. If you would make money on concentrated liquidity you would make more by just swing trading. There are service provider like gamma etc. But part of revenue goes to those provider. So for them it doesnt matter if the positions faces huge IL. So they prefer small ranges and reallocate often to earn more fees. Not only to earn more for themselves but to stay competitive too. But they only show you the high apy from trading fees.

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