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Concentrated Liquidity Vs Standard Pools
Choose the right option
As mentioned previously as a liquidity provider (LP) you now have the option to choose between the new Concentrated Liquidity pools or the Standard Liquidity pools already in existence. Concentrated Liquidity pools offer LPs some incredible benefits but they may not be right for everyone. Here are some things to consider when trying to figure out which type of pool you want to use.
When to use Concentrated Liquidity pools:
- If you have a specific price range in mind for providing liquidity.
- If you want to optimize return on capital.
- When you need more accurate and timely price information.
When to use Standard Liquidity pools:
- If you prefer simplicity and lower transaction fees.
- If you are new to providing liquidity and prefer a straightforward model.
- If you want to avoid the complexity and management involved with Concentrated Liquidity