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  1. Arbidex Quantum
  2. Concentrated Liquidity

Capital Efficiency

PreviousConcentrated LiquidityNextTick and Ranges

Last updated 2 years ago

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The formula to determine the efficiency of a concentrated Quantum pool position in comparison to providing liquidity across the entire classic pool curve is as follows:

Efficiency=1/(1βˆ’(a/b)(1/4))Efficiency = 1 / (1 - (a/b)^(1/4))Efficiency=1/(1βˆ’(a/b)(1/4))

Here, 'a' and 'b' represent the respective price bounds for the position.

This equation enables a precise assessment of the relative efficiency between concentrated quantum positions and traditional classic liquidity provisions, thereby facilitating informed decision-making for liquidity providers within the whitepaper context.

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