Concentrated Liquidity (CL) Gauges
A Concentrated liquidity staking/rewarder solution novel to Fantom
Web app is available at shadow.so
SHADOW introduces a significant enhancement to the concentrated liquidity rewarding model, primarily through an innovative concentrated liquidity gauge contract infrastructure. This crucial component seamlessly integrates into the ve(3,3) model, and is implemented and secured under a BUSL-1.1 license.
Features of SHADOW CL Gauges
Non-custodial staking solution
SHADOW employs a unique method of staking and rewarding liquidity providers through a delegation mechanism. This approach allows users to retain their non-fungible LP positions in their wallets while still earning fees, SHADOW token emissions, and other liquidity provider incentives.
Competitive Rewarding Logic
The CL Gauges determine rewards based on several factors:
Tick Delta (Δ) (Upper Range - Lower Range) of the user's position
Position size
Position Utilization: In Range? (True or False)
This rewarding methodology offers several benefits. It encourages tighter liquidity ranges, resulting in higher emissions for participants. By concentrating liquidity within these utilized ranges, overall slippage decreases, liquidity depth within the given range increases, and volume/fees increase due to more favorable swap routing.
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