Moai Finance 2.0

Moai Finance 2.0 utilizes Uniswap V3 to provide concentrated and efficient liquidity.

Concentrated Liquidity Concept

What is Concentrated Liquidity?

Concentrated Liquidity allows liquidity providers to:

  • Specify precise price ranges for token pairs

  • Maximize capital efficiency

  • Provide liquidity more strategically compared to traditional AMMs

Key Characteristics

  1. Customizable Liquidity Ranges

    • Providers can select specific price intervals

    • Liquidity is concentrated within chosen price bounds

    • More capital deployed near current market price

  2. Price Ticks

    • Discrete price points within the liquidity range

    • Enables granular liquidity positioning

    • Similar to order book price levels

  3. Active Tick

    • The current price tick where trading occurs

    • Liquidity is most concentrated and active at this point

Technical Implementation

Smart Contract Modifications

Interaction Workflow

  1. Liquidity Provision

  2. Staking Liquidity

  3. Unstaking Liquidity

Unique Features

  • Flexible Staking: Partial liquidity can be staked

  • Reward Tracking: Continuous Moai rewards for staked positions

  • Fee Distribution: Trading fees distributed to Moai stakers

Important Considerations

  • Transferring position NFT automatically un-stakes all liquidity

  • Staking amount cannot exceed available unstaked liquidity

  • Carefully select price ranges to optimize returns

Potential Strategies

  • Narrow Range: High capital efficiency, more risk

  • Wide Range: Lower capital efficiency, more stability

  • Dynamic Range Adjustment: Actively manage liquidity position

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