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Uniswap V3 Liquidity Engine
The Uniswap v3 liquidity engine can be challenging for liquidity providers to navigate, as they must select the optimal price range to allocate their capital to. Even experienced DeFi users may struggle with this task. A tightly concentrated position around the current trading price can yield higher returns, but it is more likely to fall out of range quickly and stop earning fees. On the other hand, a wider position is less likely to fall out of range but earns lower fees. Additionally, monitoring and adjusting one's position requires multiple transactions and gas costs.
Furthermore, many DeFi users are more familiar with the incentivized farming model, where they stake their LP tokens to earn rewards. However, Uniswap v3 positions are in the form of NFTs, making it challenging to implement token incentivization.
The GND liquidity engine optimizes and manages Uniswap v3 liquidity by incentivizing specific ranges for pairs. Users can provide liquidity for a pair at a specified range and receive ERC20 LP tokens that represent their position. GND can incentivize concentrated liquidity for Arbitrum native tokens and collect trading fees from these pairs as revenue. In return, GND will offer GND and xGND incentives for those who provide liquidity and stake in the farm. The GND farm simplifies the earning process for Uniswap v3 liquidity providers and incorporates a more sustainable farming approach by introducing revenue from concentrated liquidity.