What is Supercharged Liquidity?
Proposals #432 & #433 (implementing CL & incentives)
READ this to get up to speed!π§΅π
In short, Supercharged Liquidity is the @osmosiszone implementation of concentrated liquidity pools. This aims to improve pool depth to provide better experience for users.
To begin, let's explain Osmosis Proposals #532 & #533 ππ§ͺ
Concentrated liquidity improves AMM efficiency by increasing depth of liquidity at a particular range. This also allocates more incentives for LPs within the specified range
There are risks however.
For more information check out this thread by a fellow #Cosmonaut π
So, how are incentives allocated when introducing a Supercharged pool? π
1β£ A Supercharged pool goes live, users need to migrate liquidity to the new pool, or face a 5% penalty to incentives
2β£ $OSMO incentives are allocated to a specific range in the new pool
3β£ Liquidity concentrated in this range will receive a greater portion of incentives
NOTE
β’ Liquidity that isn't ranged will still receive rewards
β’ Liquidity in old pools will still receive rewards initially but with a penalty
β’ Non-ranged liquidity will not receive as many rewards as CL positions
Make sure to migrate liquidity to the new pool! π€π§ͺ
When managing LPs
β’ CL positions cannot be superfluid staked
β’ Incentives are allocated to a range (reducing APR for normal positions)
β’ Rewards are claimed manually for CL positions
β’ No bonding period for CL positions