Liquidity for Pros: Non-Fungibility and Bonding


Uniswap v3 Concentrated Liquidity

Uniswap prepared a friendly video explaining this upgrade, and I will use a screenshot from it to summarize.

Screenshot from

Olympus DAO Bonding

If you recall in part 3 we briefly discussed “Ape” liquidity, where startups offer unsustainable incentives to attract early investors to become liquidity providers. If these rewards dry up, if the price rockets and LPs want to take profit, or if for any other reason the whimsical DeFi crowd-funders decide to withdraw their liquidity: an extremely promising project could suddenly collapse and seems like a liquidity risk or “rug pull”. This is a major hurdle for current DeFi startups — ensuring a reasonable constant supply liquidity without forcing investors to enter long-term staking contracts.



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