For most of the history of cryptocurrencies, assets were only tradable through a centralized broker or directly peer-to-peer.
Concentrated Liquidity
A solution to the full-range problem came in March 2021. Uniswap released Uniswap V3. One of the many new features was concentrated liquidity.
New Challenges
Concentrated liquidity was a huge change for the liquidity provider, and not all of the changes were positive.
Liquidity Managers
Concentrated Liquidity Managers (CLMs) or Concentrated Liquidity Market Makers (CLMMs) are protocols that are designed to deal with the new challenges of concentrated liquidity.
Competitive Liquidity
One of the most important yet misunderstood concepts in concentrated liquidity is its inherent competitiveness.
What is LCM?
LCM is a concentrated liquidity provision algorithm that generates compelling returns with simple and painless user experience
Algorithm Design
Purpose,
Archetypal States,
Utilizing token composition and volatility, the rebalancing strategy classifies the vault into five distinct states:
Chainlink
In order to enhance the capability for liquidity providers to establish robust on-chain liquidity, LCM sought an efficient solution to scale their rebalance functionality.
The future
With the emergence of Uniswap V4, Algebra V2, Balancer V2, and other advancements, concentrated liquidity becomes a permanent fixture.
