Concentrated Liquidity Pools

With the introduction of concentrated liquidity pools users now have a choice when providing liquidity on VaporDex. Concentrated liquidity pools (sometimes referred to as V2 pools) are a fork of the Uniswap V3 pools which are intended to provide liquidity providers with more flexibility and capital efficiency.

If you are unfamiliar with how liquidity pools work in general it is recommended that you read the previous sections within the Liquidity Pools section before reading this section. If you are interested in providing liquidity on the Telos network please see the Telos on VaporDex section.

Given the complex nature of this topic we will try to describe concentrated liquidity pools with some examples but at the heart of it they are a way for liquidity providers to make their capital work harder for them, provide them with more options, and to some extent mitigate risk. In the following sections we will cover each of these points in more detail.