[UDC 2021] QuarkChain Founder Qi Zhou’s Speech at Upbit Developer Conference: Concentrated Liquidity for Multiple Pooled Assets
Dunamu, the operating company of Upbit exchange, held the 4th Upbit Developer Conference (UDC) for two days from September 1st.
QuarkChain participated in UDC as a speaker this year after participating as the speaker and a booth in the previous events. This time, he gave an insightful lecture on the topic of DeFi as a leading company in the blockchain industry.
Under the theme of ‘Welcome to the Blockchain World’ UDC 2021 took place virtually with over 8,000 pre-registering for the event and has ended successfully with total views on YouTube surpassing the 70,000 mark.
Qi’s speech focused on concentrated liquidity for multiple-pooled assets. Concentrated liquidity refers to focusing a liquidity pool on a target price range to increase capital efficiency.
By narrowing the price range in which you want to concentrate your liquidity, you can focus liquidity on prices that an asset regularly hits instead of spreading it out over a wide range of prices that the asset rarely or never hits.
For example, let’s say nearly all transactions for DAI and USDC occur within a range of $0.99 and $1.01. Without concentrating liquidity, it’d be spread out over the entire price range from $0 to the highest price. Around 99.5% of the liquidity pool would sit there idle.
The first protocol to implement concentrated liquidity was Uniswap. Through concentrated liquidity, Uniswap V3’s capital efficiency was increased by 2000 times compared to V2.
Within three months of V3’s launch, Uniswap’s total value locked (TVL) increased to around $2.58 billion.
However, Uniswap only offers concentrated liquidity for asset pairs. Qi introduced Smoothy Finance and aims to achieve concentrated liquidity pools for up to four or five assets at a time.
You can watch the full speech here:https://www.youtube.com/watch?v=ZlOci6O-s40&t=17226s
Qi was a senior engineer at Google and Facebook before stepping into the blockchain world.
QuarkChain offers a scalable blockchain infrastructure that applies sharding technology. QuarkChain, which combines state sharding with blockchain for the first time in the world, has been operating the mainnet stably for more than two years and has achieved not only scalability but also flexibility to vary the configuration of each shard through heterogeneous sharding technology.