The beta version of VVS Flawless (V3) Liquidity is now live, allowing users to test the product and share their opinion about it. This will help make more improvements and bring the final product to market to its best ability. The goal here is to optimize the performance of V3 before the fourth quarter ends.
There is a lot of focus on the fourth quarter, as the stated roadmap highlights that plans are underway to launch V3 Farms, Analytic Page, and more features during that period.
Until then, the features that the community can access are multi-trade fees, V3 liquidity, active liquidity, capital efficiency, range limit orders, and non-fungible liquidity. V3, by and large, resolves the issue of capital efficiency that V2 possessed. Users would be liable to receive only a particular range of stake rewards. With V3, they are eligible to receive a return from zero to infinity. All they have to do is contribute to the regular trading pool and see it spread across the pricing curve.
The multi-tier fee is an improvement; V2 stated only 0.3%, while V3 takes it up a notch to offer 0.01%, 0.05%, 0.3%, and 1%. Meaning, there are now four different fee tiers as compared to a single tier that was offered by the previous version.
This helps liquidity providers and traders with maximum liquidity and lowest fee tiers.
Flawless liquidity specifically solves the distribution of liquidity. LPs would earlier see a particular range determine the worth. This has now been deemed inefficient, allowing LPs to select the range of their choice or per the market conditions. Capital is, therefore, distributed in intervals where trading occurs the most. This extends to the purpose that V3 rightly deals with capital inefficiency.
Concentrating liquidity in V3 instead of V2 mitigates the risk factor. Active liquidity enables LPs to adjust the liquidity range when the price falls out of it. Another option is for them to wait for the market to re-price when the situation changes. Liquidity is removed only when the price goes out of range. This brings traders to Range Limit Orders.
By using the feature, LPs can accomplish a goal similar to the one that a standard limit order accomplishes. It basically brings the situation where the market price enters a specific range, and an asset is sold for a different asset while still earning swap fees.
Every LP has the ability to establish its own price curve. Consequently, introducing the basics of non-fungible liquidity. In this procedure, a non-fungible liquidity position is created.
To provide a more user-friendly experience, UI and UX have been brought to the forefront of the spotlight once more. When an LP wishes to begin its staking journey, navigating is simpler. Significant improvements have been made to the platform’s visual appeal, intuitive mechanism, and smoothness.
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