Velocimeter Concentrated Liquidity

Velocimeter Concentrated Liquidity relies on the Graphene tech which is a licensed fork of Carbon DeFi by Bancor. For further information, proceed to the Graphene explanation and the Carbon DeFi docs.

Graphene CL

First iteration of Velocimeter CL is based on Graphene Overlapping Strategy. The strategy is created by Velocimeter with pre-defined semi-conservative range.

Velocimeter has added a new Pair Factory to create Graphene CL Pairs that host the strategy NFT. Therefore the pre-defined range is immutable and can not be changed by the user or the Velocimeter team.

When the pair and gauge is created, user deposits liquidity to the pair and receives a LP token. The LP token is then staked in the gauge to earn rewards. If the market price goes out of the range the user should unstake and withdraw the LP tokens and deposit into the new pair with the new range. However, the rewards are not affected by the market price change and the user will continue to earn rewards before rewards are depleted or the user unstakes.

Velocimeter Team is working on permissionless range creation and incentivization of those ranges that generate most volume and stay within the range.