Perks for Traders
Last updated
Last updated
One of the key benefits for traders is reduced slippage. With concentrated liquidity, deeper liquidity is available exactly where it’s needed most—within active trading ranges. This ensures that trades can be executed with minimal price impact, providing better pricing and a smoother trading experience. Because liquidity is focused in specific price ranges, rather than spread across an infinite spectrum as in traditional AMM v2 models, traders face less slippage and enjoy more accurate pricing. By incentivizing greater liquidity depth around the current market price, concentrated liquidity allows for better trade execution and reduced costs for traders.
💡 Example: You can trade USDT for 1,000 TON withoth any slippage. Add 5,500 USDT to a narrow price range in the TON/USDT pool. As the price moves, your USDT automatically converts to TON with zero slippage—a limit order in action
Be sure to withdraw your liquidity afterward to secure your tokens
With more liquidity concentrated in active price ranges, trades are executed more efficiently. This means fewer failed or delayed transactions during high volatility periods, as the liquidity pools are designed to support higher trading volumes without disrupting the flow of trades. The result is a faster and more reliable trading experience for users.
Concentrated liquidity also leads to greater price stability. Since liquidity is focused within specific price bands, the price impact of individual trades is minimized, creating more consistent and predictable price movements. Traders benefit from more stable pricing, even during high trading volumes, which can help them manage their trades with greater confidence.
