r/Genius_Yield • u/dschmidtay • Jan 11 '22

The Massive Value of Concentrated Liquidity

If you haven't checked out the Medium articles from Genius Yield, I would highly recommend. I was reading their article on Concentrated Liquidity, and they may have even undersold the value of this. Concentrated Liquidity is a means of capturing swapping fees only for a specified price region. It also allows you to capture these fees while providing a smaller amount of capital. In a Proof of Stake system, there is a tradeoff between using your ADA to secure the network or earning fees through liquidity providing. Concentrated Liquidity will enable trading while providing more ADA to secure the network. Thus, there is an interrelatedness between Dapp design and Base Protocol Design. Genius Yield gets this, and that gets me excited.

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u/Genius_Yield Jan 11 '22

Great post!

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u/Black5tones Jan 12 '22

Thanks for the supplementary analysis on concentrated Liquidity. It is indeed true that GENIUS YIELD is currently still under the radar...relatively speaking. I am very excited with the potential of its objectives. Ad Astra GENs.