4.1 Uniswap

4.2 Hyperliquid

4.3 Aster

4.4 Meteora

  • Meteora, Solana
  • Liquidity provider
    • Volume is king
    • Earn fees by providing liquidity to trading pairs
    • Can make profit no matter which direction the market goes (bull or bear)
  • AMM: Automated Market Maker
    • Zero to infinity price range
    • Some price ranges are rarely used (e.g., very high or very low prices)
  • CLMM: Concentrated Liquidity Market Maker
    • Focus liquidity in specific price ranges
    • More efficient use of capital
  • DLMM: Dynamic Liquidity Market Maker
    • Concentrated price ranges that adjust based on market conditions
    • The more volatile the market, the wider the price range
    • LPs can shape liquidity distribution
  • Jupiter Aggregator
    • Aggregates liquidity from multiple DEXs on Solana
    • Finds the best price for trades (swaps)
    • Reduces slippage
  • Bins
    • Price ranges where liquidity is concentrated
    • Traders can choose specific bins to trade in
  • Shapes/Stacking Strategies
    • Spot: Flat, equally distributed liquidity across all bins
    • Curved: Most in stable coins, less in volatile assets, most liquidity in the middle bins
    • Skewed: Most liquidity in the two extreme bins, less in the middle bins
  • Impermanent/Divergence loss
    • Loss incurred when the price of assets in a liquidity pool diverges from their original price
  • Dynamic fee:
    • Higher fees during high volatility to compensate LPs for increased risk
    • Lower fees during stable periods to encourage trading
  • More TVL will attract more traders, creating a positive feedback loop