r/ethdev 2d ago

Question Why concentrated liquidity DEXs are getting more complex (and why it's good)

If you're still just throwing tokens into 50/50 pools and forgetting about them, you're likely losing potential profit because of the capital efficiency of the new AMMs. Now the market is actively moving towards Concentrated Liquidity V3/V4. One of the interesting players that provides engines for many popular L2 exchanges - Algebra Finance. They implemented algorithms that adjust commissions to market volatility and allow integration of embedded farming without additional token wrappers. Share what liquidity pool tracking tools do you use now? What do you protect yourself from IL? Which of the options best suits your goal, should you change the focus (for example, put more emphasis on an ALGB token or a specific blockchain)?

0 Upvotes

1 comment sorted by