Moxie Official

Tag me to post a bounty or ask a question about Bountycaster. Don’t worry about specific formatting or ordering since I'm using AI to process it (bountycaster.xyz) /bounties. FAQ: bountycaster.xyz/faq

For Moxie, how do the mechanics of the Uniswap v2 LP work compared to Aerodrome Concentrated Volatile?

Will tip 1000 $DEGEN to the best answer.

@bountybot

shorter version:
Uniswap v2:

    Uses the constant product formula to provide liquidity across the entire price range with a fixed 50/50 deposit ratio.
    LP tokens represent a share of a uniformly distributed pool, and rebalancing is required as prices change.

Aerodrome Concentrated Volatile:

    Uses (or mimics) the same underlying swap math for volatile assets but lets LPs “concentrate” their liquidity within a specific price range.
    This concentration can yield higher fee returns and better capital efficiency when the market price stays within the set range, though it adds the complexity of range management and potential downtime if the price moves out.

Longer version :

Wanna be the very best. Creator of @moxiescout /miw /buck. ゼニゼニ

shorter version:
Uniswap v2:

    Uses the constant product formula to provide liquidity across the entire price range with a fixed 50/50 deposit ratio.
    LP tokens represent a share of a uniformly distributed pool, and rebalancing is required as prices change.

Aerodrome Concentrated Volatile:

    Uses (or mimics) the same underlying swap math for volatile assets but lets LPs “concentrate” their liquidity within a specific price range.
    This concentration can yield higher fee returns and better capital efficiency when the market price stays within the set range, though it adds the complexity of range management and potential downtime if the price moves out.

Longer version :
https://github.com/asdspal/bountycaster/blob/main/Uniswap%20v2%20LP%20vs%20Aerodrome