Thread by @carbondefixyz

GM!🗿Welcome to Carbon, a new form of on-chain liquidity designed for personalized trading and market-making strategies.

Deploy strategies composed of multiple on-chain limit & range orders for any given token pair, with each order represented by a unique bonding curve.

👇

2/ Trading strategies that have historically been prohibitively expensive or downright missing on DEXs will be universally available on Carbon.

Automated ‘buy low, sell high’ strategies, ‘average-in’ orders, limit orders that don’t reverse when markets retrace. Carbon does it.

3/ Want to trade a crabby market?

Set a strategy that buys ETH between 1200 & 1300 USDC & sells ETH between 1500 & 1600 USDC. ETH accumulated in the first order becomes instantly available to sell for USDC as prices move into the second range.

No oracles or keepers required.

4/ Carbon supports on-chain orders that can be:

▶️◀️concentrated in specific price ranges
🔗linked together
✈️adjusted on the fly
🎯irreversible on execution
🚫resistant to MEV sandwich attacks

5/ What powers this on-chain sorcery?

Asymmetric Liquidity and Adjustable Bonding Curves (ABCs), two inventions that greatly expand the design space for on-chain trading and market-making.

6/ Why Asymmetric?

Users have tried to use Concentrated Liquidity for limit orders in the past. Problem is all on-chain liquidity today is symmetric: tokens sold by a pool may be repurchased by the pool at the same exchange rate. When markets retrace, your order gets reversed.

7/ Asymmetric Liquidity flips traditional Concentrated Liquidity on its head. Instead of liquidity positions being governed by a single bonding curve that trades in both directions, in Carbon, each user strategy uses two curves that each trade in one direction.

8/ The one-directional nature of Asymmetric Liquidity is desirable for users who wish to commit to a premeditated trading strategy, and want to perform trades that are, by design, irreversible. Less maintenance & gas, more automation and precision.

9/ Adjustable Bonding Curves take things a step further, enabling users to adjust order conditions without needing to close and recreate their order. Orders can be updated “on the fly” via low-cost transactions - making strategy management significantly more gas-efficient.

10/ All this allows for novel DeFi strategies, including Carbon’s main feature:

Multi-order strategies that automatically shift liquidity between linked orders as they’re filled, automating and reducing the cost of order creation.

11/ At a time when most #DeFi yields have dropped below U.S. Treasury bond yields and #CeFi still retains the vast majority of liquidity and trading, Carbon equips users with new ways to trade in DeFi while supporting on-chain, decentralized liquidity for the token economy.

12/ This is just the beginning of the on-chain liquidity revolution, to learn more and stay up to date on Carbon 👇

Blog: carbondefi.medium.com

Litepaper: carbondefi.xyz/litepaper

Carbon Simulator:
github.com/bancorprotocol…

13/ Set your reminder for the first Spaces event below:
twitter.com/i/spaces/1dRJZ…

14/ Our Medium link has changed slightly - please find below:

medium.com/carbondefi

And here is the link to our introductory blog post:

medium.com/carbondefi/int…