Integral FIVE
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Concentrated Liquidity

How does Integral FIVE achieve concentrated liquidity (mirror 3x Binance)?

"Liquidity" combines 2 distinct concepts:
  • Depth: Orderbook depth, AMM shape etc. the determinant of slippage.
  • Capital: the actual amount of LP money in the Orderbook or AMM.
Conceptually, $10mil and $200mil of Capital can create the same Depth. The difference is that, the $10mil pool of capital may run out faster as more trade flows come in one direction.
At Integral FIVE, we mirror the Depth of max(3x Binance, 1x Uniswap). To do that, all we need is information: we just need to know what their Orderbook or AMM curve looks like.
Our LPs supply the Capital, according to the Depth of max(3x Binance, 1x Uniswap).
Technically, our innovation here is to de-couple Depth and Capital in our AMM design, so that we can achieve the same Depth with much less Capital. And this is called "concentrated liquidity".
For a more detailed explanation, be sure to check out:
  • Our note which explains the de-coupling idea.
  • Our paper which explains the properties of concentrated liquidity.
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