Comparing LP strategies
Concentrated Liquidity vs. Recurring Orders
Concentrated Liquidity vs.
Recurring Orders
Concentrated Liquidity vs. Recurring Orders
Decentralized exchanges (DEXes) are revolutionizing finance by offering peer-to-peer trading without intermediaries. But what is the best strategy to put your tokens to work? Let's compare three popular options: Concentrated Liquidity (such as Uniswap v3), with Overlapping Liquidity and Recurring Orders (exclusive to protocols powered by Carbon DeFi's technologies).
Strategy type: Uniswap v3
Concentrated Liqudity
Concentrated Liqudity
Concentrated Liqudity
Uniswap's Concentrated Liquidity lets liquidity providers (LPs) put their tokens within a chosen price range and earn trading fees, amplifying returns for high-volume, low-volatility pairs. But there's a catch...
Non-adjustable positions
Non-adjustable positions
Non-adjustable positions
Preset fees
Preset fees
Preset fees
Doesn't auto-compound
Doesn't auto-compound
Doesn't auto-compound
Limited price ranges
Limited price ranges
Limited price ranges
Gas intensive
Gas intensive
Gas intensive
1700
2100
Buy
&
Sell
Limit
Range
1700
2100
2100
Sell
Buy
Limit
Range
1700
2100
2100
Sell
Buy
Limit
Range
1700
2100
2100
1700
Sell
Buy
Limit
Range
1700
2100
2100
1700
Sell
Buy
Strategy type - Carbon DeFi
Concentrated Liquidity
Concentrated Liquidity
Concentrated Liquidity
Carbon DeFi unlocks several advantages over Uniswap v3's Concentrated Liquidity by using two separate price ranges for the same token, one for buying and one for selling. These ranges overlap to mimic a concentrated position while giving you unparalleled flexibility:
Carbon DeFi unlocks several advantages over Uniswap v3's Concentrated Liquidity by using two separate price ranges for the same token, one for buying and one for selling. These ranges overlap to mimic a concentrated position while giving you unparalleled flexibility:
Carbon DeFi unlocks several advantages over Uniswap v3's Concentrated Liquidity by using two separate price ranges for the same token, one for buying and one for selling. These ranges overlap to mimic a concentrated position while giving you unparalleled flexibility:
Custom fee tier
Custom fee tier
Custom fee tier
No tick boundary constraint
No tick boundary constraint
No tick boundary constraint
Adjustable
Adjustable
Adjustable
2x gas efficient
2x gas efficient
2x gas efficient
Auto-compounding profits
Auto-compounding profits
Auto-compounding profits
1700
2100
Buy
&
Sell
Strategy type - Carbon DeFi
Recurring Orders
Recurring Orders
Recurring Orders
The ultimate strategy for harnessing market volatility. Create an automated recurring trading cycle with linked buy and sell orders. Buy Low, Sell High, On Repeat.
The ultimate strategy for harnessing market volatility. Create an automated recurring trading cycle with linked buy and sell orders. Buy Low, Sell High, On Repeat.
The ultimate strategy for harnessing market volatility. Create an automated recurring trading cycle with linked buy and sell orders. Buy Low, Sell High, On Repeat.
Rotating Liquidity
Rotating Liquidity
Rotating Liquidity
Compound profits
Compound profits
Compound profits
Provide just one or both tokens
Provide just one or both tokens
Provide just one or both tokens
No trading and gas fees*
No trading and gas fees*
No trading and gas fees*
Adjustable
Adjustable
Adjustable
Limit orders and/or range orders
Limit orders and/or range orders
Limit orders and/or range orders
MEV resistant
MEV resistant
MEV resistant
1600
1800
2200
2000
Sell
Buy
Limit
Range
1600
1800
2200
2000
Sell
Buy
Limit
Range
1600
1800
2200
2000
Sell
Buy
What is it
What is it
Concentrated
Liquidity
Buy
&
Sell
Concentrated
Liquidity
Buy
&
Sell
Recurring
Orders
Sell High
Buy Low
What is it
What is it
A concentrated AMM
position
A concentrated AMM
position
A concentrated position
with flexibility
A concentrated position
with flexibility
Linked buy low, sell high orders that create an automated trading cycle
Linked buy low, sell high orders that create an automated trading cycle
Best suited to
Best suited to
High volume,
low volatility pairs
High volume,
low volatility pairs
High volume,
low volatility pairs
High volume,
low volatility pairs
High volatility pairs
(regardless of volume)
High volatility pairs
(regardless of volume)
Custom price ranges for buy and sell orders
Custom price ranges for buy and sell orders
Determine any distance between buy and sell price ranges
Determine any distance between buy and sell price ranges
On-the-fly adjustability for price range and position size
On-the-fly adjustability for price range and position size
Limit Orders
Limit Orders
Range Orders
Range Orders
Custom spread / fee tiers
Custom spread / fee tiers
No tick boundary constraints
No tick boundary constraints
Gas efficient
Gas efficient
Pair any ERC-20 tokens*
Pair any ERC-20 tokens*
Standalone positions with no reliance on pool depth
Standalone positions with no reliance on pool depth
Peer-to-peer Onchain
Peer-to-peer Onchain
User definition
User definition
Liquidity provider
Liquidity provider
Strategy maker
Strategy maker
Strategy maker
Strategy maker
Strategy type
Strategy type
Short gamma
Short gamma
Short gamma
Short gamma
Grid/fading
Grid/fading
Alpha! Alpha!
Read all about it!
Alpha! Alpha!
Read all about it!
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