DeFi
Capital Efficiency for DeFi
ApeSwap has officially announced the launch of ApeSwap V3, which utilizes the latest industry standard approach to liquidity provision known as concentrated liquidity.
The upgrade will provide both ApeSwap and its users with a higher degree of capital efficiency, making it a more complete and valuable experience for all stakeholders.
Unlike the previous version, V2 liquidity positions, which cover the entire range of the constant product formula and spread liquidity thinly across all price ranges, V3 liquidity positions are tied to a set price range.
🐵 ApeSwap V3 is now live!
Access the power of concentrated liquidity on @BNBChain and @0xPolygon 🫠
📊 Improved capital efficiency
🪙 Optimized fee generation
🤝 Better swapping rates➡️ https://t.co/bYhuvq4yWw pic.twitter.com/a99ShfGGbv
— ApeSwap (@ape_swap) April 4, 2023
The move makes ApeSwap much more efficient in terms of earning trading fees, allowing liquidity providers to have more control and users to have better swapping rates.
ApeSwap’s Head of Product, Obie Dobo, said that “ApeSwap’s V3 Liquidity is a leap towards capital efficiency, as we continue our multi-front effort towards sustainable DeFi. The enhancements V3 provides trickle down all across our ecosystem. Liquidity providers get more control. Users get better swapping rates. Partners stay on the cutting edge.”
ApeSwap’s V3 liquidity is currently available on five chains, including BNB Chain, Polygon, Ethereum, Telos, and Arbitrum, and the approach to concentrated liquidity will be slightly different across each chain.
ApeSwap users are set to reap the rewards of the significant development.
To create a V3 liquidity position, users can select two tokens they’d like to include in the liquidity position and enter an amount of one token. The other token amount will pre-fill automatically.
Users can then select a fee option from the available fee options, select a price range by dragging the boundaries in the graphic or entering a min and max price manually, preview the liquidity position, and finalize the position.
Once the transaction is complete, users will receive an NFT of the position. This NFT includes key information about the position, such as the selected price range and fee tier. Liquidity providers will earn trading fees from trades of that pair that are facilitated with V3 liquidity, as long as those trades are within the price range and fee tier selected for that position.
ApeSwap’s upgrade to V3 concentrated liquidity is a significant step towards providing a more complete and valuable experience for liquidity providers, partners, and swappers on the ApeSwap DEX. With this upgrade, ApeSwap establishes itself as an industry leader in sustainable DeFi and continues to offer innovative solutions to its users.
What Is ApeSwap:
ApeSwap is a leading DEX on BNB Chain, which offers users the best trading experience. ApeSwap is a blend of a decentralized exchange, yield farming, staking, and an automated market maker (AMM). ApeSwap users are urged to partake in its liquidity pool offerings via yield farming to earn its native BANANA token. What’s more, these earned tokens can be used to stake and earn other tokens and unlock deluxe features.
