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Swap: Concentrated Liquidity Marker Maker (CLMM)
GooseFX SSL v1: An Overview of Concentrated Liquidity Swap
GooseFX SSL v1 presents a transformative approach to decentralized exchange and liquidity provision. It introduces a single-sided liquidity pool model, optimizes liquidity concentration to reduce slippage, and safeguards liquidity providers (LPs) from impermanent loss.
Concentrated Liquidity: The Concept
Concentrated liquidity in GooseFX SSL v1 is a unique concept that revolves around three primary components:
- 1.Single-Sided Liquidity Pools: This feature simplifies the liquidity provision process as it allows users to deposit a single asset into the pool, eliminating the complexities of traditional liquidity provision methods.
- 2.Liquidity Concentration Curve: The core innovation lies in the new type of curve that concentrates liquidity around the current market price. It not only reduces slippage but also maximizes trading efficiency.
- 3.Dynamic Price Adjustment: The design allows prices to flexibly switch between the curve and the oracle, ensuring a fair and market-aligned pricing mechanism while protecting LPs.
Trading Incentives
GooseFX SSL v1 encourages trades that help rebalance assets and liabilities by offering favorable prices. The advantages of this design have been demonstrated both analytically and through simulations, highlighting its effectiveness in enhancing trading efficiency and liquidity provision.
Integration with Jupiter
GooseFX SSL v1 incorporates Jupiter's price aggregation system. Jupiter ranks asset prices across all integrated markets, creating the best price route combinations for asset swaps. For more information on the Jupiter Swap aggregator, please refer to their official documentation.
In summary, GooseFX SSL v1 revolutionizes the DeFi space by optimizing liquidity concentration and making liquidity provision simpler and more efficient. Its integration with Jupiter Swap also ensures the best price for traders, making it a significant advancement in the world of decentralized finance.
Last modified 3mo ago