🚿Concentrated Liquidity

Velar Artha will incorporate the concept of concentrated liquidity, inspired by Uniswap V3, to optimize capital efficiency and improve the trading experience. Concentrated liquidity allows liquidity providers to allocate their assets within custom price ranges, rather than distributing them evenly across the entire price spectrum.

By concentrating liquidity around the current market price, slippage is reduced, and trading becomes more efficient. Liquidity providers can earn higher fees by strategically placing their assets in high-demand price ranges. This enhancement attracts more liquidity to the platform and benefits both traders and liquidity providers.