Introducing Zeus Swap: CLMM DEX on Metis
In the context of the rapid development of the Metis ecosystem, Zeus Swap team is happy to announce that testing of its concentrated liquidity DEX is completed and we are ready to launch Zeus Swap Mainnet Beta.
Why CLMMs?
A focal task for Automated Market Makers is to distribute liquidity with higher capital efficiency. Liquidity optimization can be conducted in two ways :
- By the use of mathematical formula implemented to create the perfect uniform liquidity curve for different scenarios.
- By giving flexibility to liquidity providers in how they distribute their liquidity and rely on the market to optimize the liquidity distribution.
Concentrating liquidity means a liquidity provider isn’t inefficiently spreading liquidity uniformly at all prices. Instead, assets are allocated at specific, custom price ranges where price action is active. Like other models, all trading fees collected within a given custom trade range, captured as non-fungible LP tokens, are split to all suppliers proportional to the number of assets provided.
With that flexibility liquidity providers can supply token assets to a pool at various ranges that will suit their market making strategies and appetite, the same way as they would in a traditional exchange. There is also an option of implementing reward maximizing plans through algorithmic yield optimization trading strategies.
Since LPs require fewer assets to maintain low slippage it results in higher capital efficiency and deeper liquidity for traders. But the best part here is the increased amount of rewards for liquidity providers as a reflection of the boosted efficiency, while at the same time dampening the effects of impermanent loss.
What features will be available to Metis DeFi degens?
Zeus Swap will allow users to set a specific price range to add liquidity. Starting with X-Y pool going live.
With CLMM’s price range settings, users can make range order trading to meet their various trading needs, which is very similar to limit order trading on a centralized exchange.
About Zeus Swap⚡️
Zeus is a liquidity protocol built on Metis blockchain. It focuses on delivering a better trading experience and upgraded capital efficiency to DeFi users through the process of building its concentrated liquidity protocol and a series of affiliate functional modules on Metis L2 Blockchain.
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