Automated, Targeted Liquidity Pools

‍BNB Chain rising star Thena has announced the FUSION partnership to integrate concentrated liquidity into the Decentralized Exchange (DEX), in conjunction with Ethereum native Gamma Strategies and Polygon project Algebra.

With the expiration of Uniswap v3’s “business use license,” starting April 1 developers will be free to copy the protocol’s code, including its major innovation of concentrated liquidity, designed to increase the efficiency of the Automated Market Maker (AMM) by enabling users to narrow the price range where their LP deposits will be used for token swaps (so liquidity isn't sitting "idle" at extreme high and low price points at which swaps aren't happening).

It is anticipated that Decentralized Finance (DeFi) protocols across the crypto landscape will incorporate Uniswap v3 features when they are publicly available, and that new v3 forks will also spring up to compete with existing projects.

In a Medium post, the Thena team claims that its FUSION solution improves on Uniswap v3 by combining Gamma’s automated active liquidity management with Algebra’s concentrated liquidity and dynamic fees model, on Thena’s ve(3,3) model (based on Solidly).

“FUSION pools go beyond a simple hard fork. They introduce dynamic fees, eliminating the need for users to switch pools to optimize fee revenue. Additionally, they support limit orders, enhancing functionality and elevating the overall user experience,” according to the post.

Thena exploded onto the BNB Chain DeFi scene in 2023, with its TVL skyrocketing above $170 million in early March before declining to about $96 million currently, according to DefiLlama.

Similarly, the price of $THE almost hit the $1 mark in mid-February before cooling off to its current value of $0.35, according to CoinGecko.

Meanwhile, Gamma’s TVL has been on a vertical trajectory as DEXes on multiple chains adopt its active liquidity management features, and is currently at $84 million, according to DefiLlama.

Riding the narrative generated by the newfound availability of v3 and concentrated liquidity, the price of $GAMMA has increased by nearly 120% in the past two weeks, according to CoinGecko.

One protocol that Gamma has integrated with, for example, is Polygon’s QuickSwap DEX, which published a short explainer video on Twitter about how the utility works.

QuickSwap (also on Polygon zkEVM and Dogechain) uses Algebra’s concentrated liquidity model, as does Zyberswap on Arbitrum, StellaSwap on Moonbeam, SkullSwap on Fantom and NomiSwap on BNB Chain. Future integrations are on tap for UbeSwap on CELO and SpiritSwap on Fantom.

See this Medium post from Algebra for more information on its long-term partnership with Gamma.

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What is Thena Finance:

THENA is a decentralized exchange ecosystem on BNB Chain. THENA is designed to be the native liquidity layer of BNB Chain. The protocol seeks to build partnerships that enable a decentralized and open-source economy and builds on a collaborative strategy to solve the liquidity problem for projects.

Where to find Thena Finance:

Website | Twitter | Medium |