How to become LP

Kayak Finance currently features two types of pools.

Concentrated Liquidity Pool

Inspired by Uniswap v3, Kayak FInance CL Pool allows LPs to concentrate their capital within a custom price range to provide more liquidity at the desired price. In this way, there are several characteristics:

• Increased capital efficiency

By pooling liquidity, LPs can provide the same depth of liquidity as v2 within a specified price range while reducing capital risk. Users don't have to worry so much about impermanent loss.

• Custom price ranges

Users can customize the price range to accumulate more assets when the price falls, or sell when the price rises, while earning fees. If the market price falls outside the price range specified by the LP, their liquidity is effectively removed from the pool and no fees are incurred.

Stable Pool

The Stable Pool adds a linearly invariant constant and curve (x+y=k) on top of the constant product formula (x*y=k) to keep prices more equal, as long as the liquidity pool is not extremely unbalanced. As a result, asset swaps can be made with extremely low slippage.