Comparing LP strategies
Decentralized exchanges (DEXes) are revolutionizing finance by offering peer-to-peer trading without intermediaries. But what is the best strategy to put your tokens to work? Let's compare three popular options: Concentrated Liquidity (such as Uniswap v3), with Overlapping Liquidity and Recurring Orders (exclusive to protocols powered by Carbon DeFi's technologies).
Strategy type: Uniswap v3
Uniswap's Concentrated Liquidity lets liquidity providers (LPs) put their tokens within a chosen price range and earn trading fees, amplifying returns for high-volume, low-volatility pairs. But there's a catch...
Non-adjustable positions
Preset fees
Doesn't auto-compound
Limited price ranges
Gas intensive
Strategy type - Carbon DeFi
Custom fee tier
No tick boundary constraint
Adjustable
2x gas efficient
Auto-compounding profits
Strategy type - Carbon DeFi
Rotating Liquidity
Compound profits
Provide just one or both tokens
No trading and gas fees*
Adjustable
Limit orders and/or range orders
MEV resistant
