Concentrated Liquidity

Unlocking greater capital efficiency

Catex, powered by Uniswap v4 infrastructure, features advanced concentrated liquidity pools, allowing liquidity providers (LPs) to allocate capital within specific price ranges. LPs earn fees only when trades occur within their selected range, maximizing capital efficiency and returns.

Advantages of Concentrated Liquidity:

  • Higher Capital Efficiency – Up to 10x greater efficiency compared to traditional AMMs.

  • Reduced Slippage & Tighter Spreads – Ensures better trade execution and market depth.

  • More Fee Generation – Optimized liquidity placement leads to higher earnings for LPs and veCATX holders.

  • Preferred by Aggregators – Increased efficiency attracts trade volume from external aggregators.

Challenges and Solutions:

  • Requires Active Management – Positions must be adjusted as prices fluctuate.

  • Impermanent Loss Risks – Exposure outside the selected price range can result in losses.

  • Steeper Learning Curve – More complex than traditional liquidity provisioning.

To simplify this process, Catex integrates Automated Liquidity Managers (ALMs) to help users manage their liquidity efficiently without requiring constant adjustments.

  • Managed by Automated Liquidity Managers (ALMs), which optimize liquidity positions based on market conditions.

  • 100% of trading fees go to gauges, and LPs earn oCATX emissions as rewards.

  • Ideal for users who prefer hands-free liquidity management.


Earning oCATX

Stake your LP tokens into an active gauge to earn oCATX rewards, with no deposit or withdrawal fees. Liquidity can be removed at any time.

To learn more about the mechanisms behind concentrated liquidity please visit Uniswap Docs

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