Providing Liquidity

In Monadium, users have the opportunity to provide liquidity in various forms while simultaneously leveraging our unique benefits.

Options for providing liquidity include:

Uniswap V3 style Concentrated liquidity

Monadium features concentrated liquidity pools DEX-wide for maximum capital efficiency.

It utilizes a fork of UniSwap V3 concentrated liquidity pools. By pooling together a significant amount of liquidity in a concentrated manner, swaps benefit from increased market depth and tighter spreads. This enables participants to execute their trades at more favorable prices and reduces the potential slippage costs. This stability provides traders with greater confidence in executing swaps, as they can anticipate more predictable outcomes. CL also improves the chances of aggregators routing through Monadium, increasing trade volume. Ultimately, the efficiency derived from concentrated liquidity not only benefits individual traders but also contributes to a healthier and more vibrant swaps market overall, generating more organic fees for the protocol.

Uniswap V2 style Volatile liquidity

The Volatile Pools use a Uniswap v2 style constant-product curve which is the industry standard for non-correlated pairs, and is useful for providing liquidity without the hassle of managing liquidity with concentrated liquidity

Solidly's Stable Liquidity

x³y + y³x = k

The Stable Pools use a hybrid price invariant curve based on Curve Finance's Stable Swap, which is best suited towards highly correlated assets like stablecoins. Curve achieves extremely efficient stablecoin trades by implementing the StableSwap invariant, which has significantly lower slippage for stablecoin trades than constant product invariant.

Liquidity providers to our gauges will earn emission rewards. Additionally, trading fees are distributed to ve holders, ensuring proper incentives distribution.