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Velodrome
@velodrome
Velodrome Slipstream has brought concentrated liquidity to the MetaDEX model, massively increasing volumes. Slipstream improves on UniV3 style AMMs with wider tick spacing (less rebalancing) and a consistent stream of rewards (less volatility). Read more below. 👇
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Velodrome
@velodrome
Concentrated liquidity pools play a crucial role in enabling low slippage onchain trades. By maintaining liquidity around a narrow price range, they ensure that trades can be executed at predictable prices even with larger size.
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Velodrome
@velodrome
However, during times of high volatility, prices can quickly move into ranges where lower liquidity is available, leading to increased slippage in critical moments.
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Velodrome
@velodrome
Slipstream aims to mitigate this in three ways: • Wider tick spacing than UniV3 • Continuous VELO incentives to active tick • Full-range pools as back-up
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Velodrome
@velodrome
Wider ticks on Velodrome simplify LP management by reducing the need for frequent rebalancing as token prices move. Velodrome's ability to attract deeper TVL means it can offer competitive trading efficiency while maintaining wider tick spacing which is better for LPs.
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Velodrome
@velodrome
Velodrome distributes VELO rewards to the active price tick at all times, incentivizing LPs to provide and maintain effective liquidity. VELO emissions stabilize prices and reduce slippage during volatility by rewarding LPs that rebalance to active ticks.
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Velodrome
@velodrome
For extra flexibility, Slipstream permits LPs to unstake their LP token, opting out of VELO rewards in favor of earning 90% of trading fees in moments of high volatility.
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