Current Market Situation
Let's look at the current applications and solutions available in the market right now!
What's happening in the market right now:
Looks familiar? This is what v2 looks like and this is currently how swaps, liquidity & major transactions are carried out currently on Binance Smart Chain Network.
In this model, when you provide liquidity, you get a share of the pool as seen in the image above.
However, remember also that in this case, liquidity is distributed evenly across the price curves which allows for all price ranges between 0 & infinity making your capital investment less efficient because most assets usually trade between particular price ranges. This is good for some but not good for all and most importantly leaves a large portion of capital in-active.
Now let's look at what v3 has to offer:
From the above screenshot of a v3 model, you can see the option to choose specific price ranges also take note that you can select fee options that are best for your investment strategy and yield target you would like to achieve. However, please take note that the above illustration is available on Ethereum Network hence one of the core objective of the TigerSwap platform is to bring this advanced version of AMMs to the Binance Smart Chain Network.
Join us and be a part of our success story as we create the next stepping stone on BSC Network.
In the next article, we shall be exploring the unique features and solution the TigerSwap team is bringing to the Binance Smart Chain Network and later you can also see the volume forecast here
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