Air Ranged Liquidity
The concept of ranged liquidity applies to liquidity providers, allowing them to provide liquidity within a concentrated range. Traditional ranged liquidity uses predefined ranges. OLLO's new Always in Range (Air) Pools use a dynamically adjusting range. Ultimately Air liquidity provides multiple benificial use case's & improvements such as:
- Maximize capital efficiency
- Simplified liquidity providing experience
- Single Air Pool AMM's
- Sophisticated range adjustments keep users liquidity always in range
- Air Pools have increased concentrated abilities when compared to static ranges
- Air Pools, or Always in Range Pools are a new type of ranged pool offered in both Single Asset & Pair Pool types. Air Pools offer a dynamically moving price range that is pegged to the pool's price movement in order to provide maximum capital efficiency & simplify the concentrated liquidity provider experience. Users can simply add thier liquidity once and the AIR pool handles the range adjutments, keeping all available liquidity within the Air range.
Always in Range
Always in Range concentrated liquidity offers a more advanced & simplistic approach to ranged pools. Air Pool's use a dynamically adjusting range to keep a center peg to the price thus preventing the user or pool from falling outside of the range. In existing ranged methods both the user & the pool itself is in danger of falling outside of the liquidity range, requiring the provider to monitor their position & if needed implement manual adjustment in order to continue receiving rewards.
Basic Pools Vs Air Pool comparison
- Basic pools provide liquidity to the entire range. Meaning a user can access liquidity at any point of the pools life. Also meaning the liquidity is spread across the entire pool making the available liquidity limited.
- Air Pools provide liquidity to a dynamically adjusted concentrated range. Like basic pools, users are able to access liquidity at any point of the pools life through the automatically adjusted Air range.
- Air pools offer a concentrated version of liquidity pools where all liquidity is concentrated in a tight range that is center pegged to the pool's price.
- Concentrated liquidity provides liquidity amplification creating far deeper available liquidity.
- Air Pools keep the range pegged to the price eliminating the concern of the price falling outside of the set range.
- Like traditional ranged pools, Air pools concentrate liquidity allowing for deeper available liquidity to facilitate trades & reduce slippage.
An established Air pool with its air range set to 1% provides all of the available liquidity within the 1% dynamic range. Since all of the liquidity is contained within the range it provides concentrated liquidity with an amplification factor to users. Compared to the basic position with the same capital, the ranged position with a 1% range provides liquidity 10 times greater than the basic position in the price range. Liquidity amplification depends on the price range set. Ultimately the liquidity amplification factor increases as the range size decreases.