VVS Finance, a top DeFi protocol on the Cronos blockchain, has announced a major upgrade to its decentralized exchange (DEX), VVS Flawless Liquidity (V3). The upgrade is designed to improve capital efficiency, flexibility, rewards, and the overall user experience for liquidity providers (LPs) and traders.
One of the key features of V3 is the introduction of multi-tier fees for swaps and trades. Users can now choose from four different fee tiers: 0.01%, 0.05%, 0.3%, and 1%. This gives users more control over their trading costs, and it also encourages LPs to provide liquidity to the pools with the lowest fees.
Another key feature of V3 is the ability for LPs to select a custom price range when adding funds to a liquidity pool. This allows LPs to concentrate their capital within the intervals where the bulk of trading activity occurs. This is more efficient than the previous approach of distributing liquidity evenly along the price curve, and it can help LPs to earn higher fees.
V3 also introduces the concept of “active liquidity”. This means that an LP’s liquidity will be effectively removed from any pool that falls outside of the price range they set. This prevents LPs from earning fees on assets that are trading outside of their desired range.
V3 also introduces the concept of “range limit orders”. This allows LPs to automatically sell one asset for another when the market price enters a specified range. This can be useful for LPs who want to lock in profits or reduce their exposure to certain assets.
Finally, V3 introduces “non-fungible liquidity”. This means that LP tokens are now represented by NFTs. This allows LPs to design their own price curves and to trade their LP positions on third-party marketplaces.
The V3 upgrade also includes a number of user interface improvements. The new interface is more visually appealing and easier to navigate.
Overall, the VVS Flawless Liquidity (V3) upgrade is a significant improvement over the previous version of the DEX. It offers a number of new features and benefits for both LPs and traders.
Here is a summary of the key benefits of V3:
- Multi-tier fees: Users can choose from four different fee tiers, giving them more control over their trading costs.
- Custom price ranges: LPs can concentrate their capital within the intervals where the bulk of trading activity occurs, which can help them to earn higher fees.
- Active liquidity: LPs’ liquidity will be automatically removed from any pool that falls outside of the price range they set, preventing them from earning fees on assets that are trading outside of their desired range.
- Range limit orders: LPs can automatically sell one asset for another when the market price enters a specified range, which can be useful for locking in profits or reducing their exposure to certain assets.
- Non-fungible liquidity: LP tokens are now represented by NFTs, which allows LPs to design their own price curves and to trade their LP positions on third-party marketplaces.
- Improved user interface: The new interface is more visually appealing and easier to navigate.
Overall, the VVS Flawless Liquidity (V3) upgrade is a significant improvement over the previous version of the DEX. It offers a number of new features and benefits for both LPs and traders.
