A Revolution for DeFi on Tezos, Plenty V3 is live!
Today marks a monumental milestone in our journey towards a more decentralized and efficient financial ecosystem. We are thrilled to announce the launch of Plenty V3, a groundbreaking upgrade for more capital efficiency in Tezos DeFi.
The cornerstone of Plenty V3 is Concentrated Liquidity: a revolutionary approach that allows liquidity providers to allocate their capital within a specific price range. Unlike traditional models where liquidity is spread uniformly across an infinite price curve, Plenty V3 optimizes the use of capital.
In traditional pools, much of the liquidity remains untouched. Plenty V3 allows liquidity providers to focus their capital on specific price ranges. This results in deeper liquidity at those ranges, enabling traders to get better rates and liquidity providers to earn more fees. We refer to this as a “position,” and providers can have multiple positions per pool.
Active Liquidity
In Plenty V3, liquidity becomes “active” or “inactive” based on the asset’s price movement in relation to the set price range of a position. When the asset price moves out of the position’s range, the liquidity becomes inactive and stops earning fees.
This dynamic nature of liquidity allows for a more efficient market, as liquidity providers are incentivized to keep their liquidity active. They can do so by setting multiple positions at different price intervals, thereby letting the market naturally determine the most efficient distribution of liquidity.
Ticks
To facilitate concentrated liquidity, Plenty V3 introduces the concept of “ticks,” which serve as the boundaries for each price range. A tick represents a ~0.005% change in price, and liquidity providers must choose the upper and lower ticks for their position.
The smart contract for the pool will continuously swap assets within the current tick range until the next tick is reached, at which point any dormant liquidity within the new tick range becomes active.
Tick spacing is directly related to the swap fee, allowing for a more flexible and efficient liquidity provision.
Range Orders
Plenty V3 introduces a novel approach to swapping through automated market makers (AMMs) with the concept of Range Orders. This feature allows for customizable liquidity positions and single-sided asset provisioning, offering a mechanism similar to traditional limit orders.
In conventional order book markets, limit orders can be set to buy or sell an asset at a predetermined price, to be executed at an unspecified future time. In Plenty V3, you can approximate this by providing liquidity for a single asset within a specific price range. Once the spot price crosses this range, the target asset becomes available for withdrawal, effectively executing the range order.
Unlike traditional markets where limit orders might incur fees, range orders in Plenty V3 generate fees for the liquidity provider as the order gets filled. This is because range orders are technically a form of liquidity provisioning.
Fees
Unlike in Plenty V2, fees are not allocated to veNFT holders for voting but are manually claimed by liquidity providers. We’ve also introduced multiple pools with varying fee tiers, ranging from 0.01% to 1%, allowing for tailored strategies based on asset volatility.
Introducing the fastest analytics for Tezos DeFi
We’re excited to share that Plenty V3 now features the fastest analytics on the Tezos blockchain! We’ve overhauled our analytics engine to provide real-time insights that are second to none.
Whether you’re a liquidity provider looking to optimize your strategies or a trader seeking the best execution prices, our state-of-the-art analytics will give you the edge you need. With lightning-fast data retrieval and intuitive visualizations, you can now make informed decisions quicker than ever.
This is more than just an upgrade; it’s a game-changer in how you interact with decentralized finance on Tezos.
We created new tools for devs!
Plenty’s Unified API
Plenty’s Unified API offers a comprehensive resource for accessing extensive information about all aspects of the Plenty ecosystem, encompassing both the v2 and v3 decentralized exchanges (DEX) as well as the vote escrow system. This unified API simplifies the process for developers to retrieve specific data related to Plenty’s applications, facilitating the creation of a wide range of services and applications on top of Plenty.
Plenty V3 SDK
A V3 SDK for Typescript developers. It simplifies interaction with Plenty’s segmented CFMM by offering essential math utilities and operation object creation for tasks like swapping, liquidity management, and staking positions in farms.
Our analytics has been upgraded and stronger than ever
Whats next?
The launch of Plenty V3 is just the beginning. We are continuously working on adding more features and improvements to make your DeFi experience seamless and rewarding. Stay tuned for more updates, and thank you for being a part of this revolutionary journey.
We invite you to experience the future of decentralized finance with Plenty V3. Together, let’s take control of our financial destiny and pave the way for a more equitable world.
About Plenty
Plenty Labs is building an all-in-one decentralized platform on Tezos. Plenty allows swaps on uncorrelated assets, and low-cost, near 0 slippage trades on tightly correlated assets. Plenty also features a built-in bridge from Ethereum and Polygon to Tezos.
