We are more than thrilled to announce the latest addition to our suite of efficient DeFi products - the concentrated liquidity automated market maker (AMM) Uniswap V3 Maia Community AMM on the Metis L2 Network. We believe that this new launch is a significant milestone that will not only grow our esteemed network but also create new revenue sources for our ecosystem and all its community members.
Firstly, let’s explain what a concentrated liquidity AMM is and how it works. In traditional AMMs, liquidity providers need to deposit equal amounts of two assets in a liquidity pool, such as ETH and DAI. However, in a concentrated liquidity AMM, liquidity providers can concentrate their liquidity in specific price ranges, which allows them to earn more trading fees than in traditional AMMs. This is a breakthrough innovation that solves the liquidity fragmentation problem in traditional AMMs and allows users to earn higher returns on their assets.
Now, let's talk about how the launch of a concentrated liquidity AMM on the Metis L2 Network is a game changer. First and foremost, it provides a more efficient trading experience for our users, which will attract more traders and liquidity providers to our network. As a result, the liquidity on our network will increase, which will lead to more trading volume and revenue for our ecosystem. This comes at a great time with the Aave deployment on Metis arriving right around the corner and we are primed to help capture a significant share of the on-chain liquidations.
Secondly, the launch of a concentrated liquidity AMM on the Metis L2 Network will create new revenue sources for our ecosystem and all its community members.
Uniswap has a built-in protocol fee switch, our deployment leverages this capability to allocate 10% of the generated trading fees in the following manner:
This creates a win-win situation for everyone in our community, as more revenue is generated and shared among all participants, allowing our DAO to maintain competitive in a sustainable manner.
In conclusion, the launch of a concentrated liquidity AMM on the Metis L2 Network is a game-changer for our ecosystem and its community members. We are confident that this innovative new product will attract more traders and liquidity providers to our network, increase liquidity, and create new revenue sources for all participants. Thank you for your continued support, and we look forward to serving you with even more groundbreaking DeFi products (V2) in the future.