Moxie Official

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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.

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

Uniswap v2 spreads liquidity evenly across all price ranges, making it simple but inefficient for MOXIE if its price stays within a certain range. LPs earn fees continuously but are exposed to impermanent loss. Aerodrome’s Concentrated Volatile pools allow LPs to focus liquidity in specific price ranges, improving capital efficiency and reducing slippage. However, if MOXIE moves outside that range, liquidity becomes inactive, and LPs stop earning fees until they adjust their position. Moxie has been promoting Aerodrome with added AERO rewards, making it attractive for liquidity providers. If MOXIE trades within a predictable range, Aerodrome offers better efficiency. If it's highly volatile, Uniswap v2 keeps LPs earning fees, even if inefficiently. The choice depends on whether LPs prefer higher rewards with active management or a more passive approach.

This was my favorite answer because it hit the "why" do this or that.

1000 $DEGEN

Glad I could provide a sufficient answer. Thank you zeni