🏇Liquidity Pools

RIDE features concentrated liquidity pools DEX-wide for maximum capital efficiency.

RIDE utilizes a fork of UniSwap V3 concentrated liquidity pools, with a suite of automated liquidity managers as partners to streamline the management of liquidity for users.

Concentrated liquidity plays a crucial role in enhancing the efficiency of swaps in several key ways.

By pooling together a significant amount of liquidity in a concentrated manner, swaps benefit from increased market depth and tighter spreads. This enables participants to execute their trades at more favorable prices and reduces the potential slippage costs.

Concentrated liquidity fosters a higher level of price stability and minimizes the impact of market fluctuations. With a robust pool of liquidity, it becomes easier to absorb large orders without causing substantial price movements. This stability provides traders with greater confidence in executing swaps, as they can anticipate more predictable outcomes. CL also improves the chances of aggregators routing , increasing trade volume.

Ultimately, the efficiency derived from concentrated liquidity not only benefits individual traders but also contributes to a healthier and more vibrant swaps market overall, generating more organic fees for pRIDE voters.

Active liquidity managers play a role in simplifying and maximizing the process of providing liquidity on concentrated liquidity decentralized exchanges (DEXs). These AMMs offer strategies that automate and optimize liquidity provision, making it more accessible and efficient for users. These liquidity managers help liquidity providers maximize their returns while minimizing their exposure to risks.

They actively monitor and adjust liquidity positions, and rebalance portfolios to ensure funds allocated are in range and earning emissions. With active liquidity managers, participants can benefit from streamlined and user-friendly interfaces, simplified liquidity management, and improved profitability, ultimately making the process of providing liquidity on concentrated liquidity DEXs much easier and more rewarding.

NOTE: While AMMs massively streamline the process of providing liquidity to CL positions, it is possible to manually manage most concentrated liquidity positions on RIDE. If you choose to do so (or the gauge has no active liquidity management), you are entitled to $oRIDE emissions and the fee, ~13% of trading fees that you generate. Keep in mind that $oRIDE emissions are distributed based on trading fees earned. The more fees generated, the more emissions received.

RIDE stands out from other CL DEXs by incorporating the use of multiple active liquidity managers instead of relying on a single provider. This unique approach offers several notable advantages.

By utilizing multiple liquidity managers, RIDE distributes the responsibility of liquidity provision across various platforms, reducing reliance on a single entity and enhancing the overall resilience and security of the exchange. Decentralization of AMMs also mitigates the risk of a single point of failure and safeguards against potential manipulation or market distortions. Furthermore, using multiple liquidity managers allows RIDE to tap into a diverse range of strategies, expertise, and market insights.

Each liquidity manager brings its own unique algorithms and risk management techniques, providing a wider array of options and potential optimizations for liquidity providers.This multi-manager approach promotes healthy competition, fosters innovation, and ensures a dynamic and evolving ecosystem for liquidity provision.

Ultimately, RIDE’s utilization of multiple active liquidity managers not only enhances decentralization but also contributes to increased efficiency, robustness, and resilience in the decentralized exchange landscape.

Overall, the integration within RIDE's ecosystem enables the efficient and customizable distribution of emissions, empowering liquidity providers with a seamless and rewarding experience.