English 
Arabic 
Persian 
Chinese 
Spanish 
Turkish 
French 
Italian 
Dutch 
Russian full security and credit the fastest time
LIQUIDITY
With real prices / in full security and credit / in the fastest time / with the lowest commission
For most of the history of cryptocurrencies, assets were only tradable through a centralized broker or directly peer-to-peer. Decentralized exchanges emerged in the late 2010s but were inefficient, centralized, and had poor liquidity. In late 2018, Uniswap V1, the first true Automated Market Maker(AMM), premiered.
Uniswap introduced decentralized liquidity pools . “Liquidity providers” or “LPs”, could deposit their assets into two-sided liquidity pools to provide liquidity for ERC-20 /ETH pairs and earn trading fees. This process was later expanded to ERC-20/ERC-20 pairs on Uniswap V2 . Uniswap’s architecture kept swaps fast and efficient for traders
In addition to Uniswap V3, a new generation of decentralized exchanges and concentrated liquidity models were built. Algebra Finance became a major alternative to Uniswap V3 with innovative features like dynamic fees.
Note: Algebra’s growing number of supported exchanges used different token models like Solidly and a more blockchain-native approach creating deeper liquidity for their users
Concentrated Liquidity Managers (CLMs) or Concentrated Liquidity Market Makers (CLMMs) are protocols that are designed to deal with the new challenges of concentrated liquidity. Different liquidity managers have different priorities. Some focus on one aspect of concentrated liquidity. Some do it all. LMPOOL was created to solve all of the challenges of concentrated liquidity. LMPOOL’s vaults provide LPs with the most optimized performance on a variety of supported platforms and blockchains. LMPOOL does this by mitigating impermanent loss and accumulating fees using proper strategies. That performance is viewable on our Analytics. LMPOOL also supports a variety of in-house and 3rd party platforms for protocols to reward incentives to liquidity providers. Finally, LMPOOL offers protocol liquidity and treasury management services to a variety of projects.
Purpose
Archetypal States
Utilizing token composition and volatility, the rebalancing strategy classifies the vault into five distinct states:
1.Optimal State
2.Excessive Inventory State
3.Insufficient Inventory State
4.Elevated Volatility State
5.Exceptional Volatility State
Each state triggers specific allocation adjustments and token concentration allocations within the rebalancing strategy
1-Optimal State
This represents the optimal condition that the rebalancing strategy endeavors to maintain for an extended duration. It denotes a scenario where the price fluctuates within the designated range of concentrated liquidity, facilitating efficient accumulation of deposit tokens via concentrated trading fees. Within a healthy state, the allocation and concentration of tokens are as follows
2-Excessive Inventory State
This condition (and the associated provision of concentrated liquidity) is activated in response to an excess of deposit tokens. In the over inventory state, the rebalancing strategy adjusts the vault’s positioning to prioritize the sale of deposit tokens, aiming to restore it to a optimal state. As depicted, a slight increase in the paired token spot FX prompts the concentrated position to sell a significantly larger quantity of the deposit token compared to a similar movement in the spot FX in the opposite direction
3-Insufficient Inventory State
This condition (along with the associated provision of concentrated liquidity) arises when there is an insufficient amount of deposit tokens. In the under inventory state, the rebalancing strategy adjusts the vault’s positioning to prioritize the purchase of deposit tokens, aiming to restore it to a healthy state. As demonstrated, a slight decrease in the paired token spot FX prompts the concentrated position to buy a significantly larger quantity of the deposit token compared to a similar movement in the spot FX in the opposite direction
In order to enhance the capability for liquidity providers to establish robust on-chain liquidity, LMPOOL sought an efficient solution to scale their rebalance functionality. Automating with Chainlink introduces a decentralized service designed specifically for handling tasks on behalf of smart contracts. This system utilizes decentralized, highly reliable, and economically incentivized automation nodes to activate smart contracts precisely when they need to execute critical on-chain functions. These functions typically occur at regular intervals (e.g., daily at a specific time) or in response to external events (e.g., when an asset reaches a predefined price).
With the emergence of Uniswap V4, Algebra V2, Balancer V2, and other advancements, concentrated liquidity becomes a permanent fixture. LMPOOL remains committed to backing compatible blockchains and exchanges while enhancing strategies for retail LPs. Further enhancements are planned for LMPOOL’s analytics suite and vault contract design
