From the creators of the first AMM, Concentrated Liquidity, and DeFi itself, comes Concentrated Liquidity 2.0 — a true game-changer in onchain liquidity.
By combining cutting-edge technology with an unrelenting determination to empower its users and drive the industry forward, Bancor is once again revolutionizing onchain liquidity.
Below you’ll find a side-by-side comparison of traditional concentrated liquidity, as it’s offered on Uni v3, versus Carbon DeFi’s concentrated liquidity (aka Overlapping Liquidity), followed by a slightly more in-depth look — concise, non-technical, and guaranteed worth your 5 minutes.
Liquidity providers, traders, token projects– enjoy.
Auto-compounding
In traditional concentrated liquidity positions, there are two possibilities:
Fees earned are not automatically added back into your position and must be done manually, costing you valuable time and gas.
Fees earned are added back in but at the expense of introducing third party dependencies such as keepers or hooks. Not only does a third party dependency bring additional costs in most cases, but more importantly, they introduce unnecessary risk as well.
With Carbon DeFi:
Profits are automatically compounding, achieving maximum capital efficiency. This comes at no additional cost and with ZERO third party dependencies or risk.
Rebalancing a Position
In order to rebalance a concentrated liquidity position on an AMM, you must:
Withdraw
Redeposit
Recreate
I can sugarcoat it all we want, but let’s be real. Rebalancing a concentrated liquidity position is inefficient. It’s costly, time-consuming, and tedious.
With Carbon DeFi:
Rebalancing a position consists of one step– editing your prices. Literally.
There is ZERO need to withdraw, redeposit, and recreate your position.
You now have the ability to seamlessly adjust your price range as the market moves and add/remove liquidity with ease, making Overlapping Liquidity:
☑️ Simple
☑️ Gas efficient
☑️ Time efficient
Fee Tiers
Before getting into the side by side on this one, let me just make something VERY clear. Your fee tier, or spread, however you choose to refer to it, is your profit. Remember that.
Traditional Concentrated Liquidity AMMs give you a few options to choose from for your fee tier, three on average. In other words, you have a protocol limiting your profit margin.
Why should you allow a protocol to limit your profit earning potential?
The answer is simple. You shouldn’t.
With Carbon DeFi, customization is at the core.
Users personalize their concentrated liquidity positions by determining their own:
Trading Pair, consisting of ANY two standard ERC20 tokens
Profit Margin AKA Fee Tier/Spread
Your profit is no longer limited by the protocol– at least not when using Carbon DeFi.
Ticks/Range
On traditional AMMs, you’re restricted to placing your position between ticks, limiting your precision and increasing gas costs when orders fill across tick boundaries.
With Carbon DeFi, there are ZERO tick constraints.
You determine within what price range you’d like to trade your tokens. Enjoy unparalleled precision and efficiency without the extra costs.
Activity Tracker
Most traditional concentrated liquidity AMMs offer an ROI along with a fee tracker. That’s great but at what prices are your tokens trading? When are they trading? These sorts of insights aren’t available, and due to the pool mechanics of AMMs, they probably won’t be anytime soon.
Technology Meets Transparency
Thanks to the innovations powering Carbon DeFi, each position operates as its own individual pool. This means trades are easily tracked against your position in real time, keeping you informed and in control.
Limited Liquidity? Problem Solved.
There are two sides to every trade:
Maker: the one providing their liquidity, or making the market
Taker: the one taking the liquidity, or trading against a position
Traditional concentrated liquidity AMMs lack dedicated takers and, as a result, are limited to the liquidity within the AMM to trade against their positions.
Carbon DeFi, on the other hand, has Bancor’s Arb Fast Lane integrated into the system, serving as a built-in solver. The Arb Fast Lane searches chain-wide liquidity to trade against your positions and to fill your orders efficiently.
Even if there are no traders visiting the UI, aggregators, or arbitrageurs, you still have a taker working nonstop to fill your trades, making Carbon DeFi the ultimate DEX/bot hybrid.
Gas Efficiency
Who doesn’t like saving money?
In comparison to leading DEXes, recent tests show Carbon DeFi is up to 2x more gas efficient!
Risk-Free Trials For Real Results
The Carbon DeFi Simulator now supports Overlapping Liquidity!
Backtest your unique trading strategy before deploying real capital directly on the Carbon DeFi desktop UI.
Your choice of ANY two standard ERC20 tokens
Any price range, free of tick constraints
Custom fee tier/spread, determining your own profit margin
Personal budget
Custom time frame, up to 365 days, with the option to modify the date range even after the simulation has concluded.
The Carbon DeFi Simulator uses real historical data to produce a detailed understanding of the strategy’s performance, which includes:
An overview bar summarizing the initial inputs, as well as Estimated Gains in TKN and ROI percentage (vs HODL).
A comprehensive array of data, generated and showcased in three distinct formats:
Animation
Visual Summary
Downloadable Trade History
User Testimony
Don’t just take my word for it either. Check out the testimony of a recent user in a public Discord chat.
“Don’t Need DEX Emissions with ROIs like that.”
A testament to Bancor’s newest technology powering Carbon DeFi and one of its licensed deployments– Graphene by Velocimeter. Shown above, two overlapping liquidity positions.
A Suite of Tailor-Made Liquidity Options
Carbon DeFi isn’t just about ‘Concentrated Liquidity 2.0’.
Liquidity providers, traders, and token projects now have access to unmatched automation, efficiency, and flexibility with Carbon DeFi’s full suite of order book-like features:
• Limit orders (buy/sell at a specific price point and receive the exact amount you quoted)
• Range orders (scale in/out, choose your own separate price ranges to buy and sell)
• Recurring orders (24/7 auto buy low, sell high)
• Next-gen Concentrated Liquidity
Explore the future of DeFi and experience the transformative power of the next generation of concentrated liquidity– Carbon DeFi’s Overlapping Liquidity.
