Advantages of V3 Pools

Unrivaled Capital Efficiency: LPs can place their capital more precisely, leading to:

• Heftier Returns: Focused capital means more earnings.

• Smoother Trades: Efficiency levels that compete with, or even surpass, traditional exchanges.

Better Exposure and Risk Management: LPs can strategically increase their stake in assets they're confident about while minimizing potential losses. This approach allows:

• Custom Risk Profiles: LPs concentrate on the assets they prefer.

• Wise Asset Placement: LPs smartly position their capital to maximize gains and reduce risks.

Innovative Trading Strategies: LPs can set up fee-earning 'limit orders' by adding liquidity to price ranges away from the current market price. This enables:

• Optimal Trading: Traders find more chances to engage with the liquidity pool.

• Strategic Provision of Liquidity: LPs earn fees by predicting market movements and positioning their capital to facilitate trades within those forecasts.