Potential of On-Chain Concentrated Liquidity

Uniswap's concentrated liquidity represents a major innovation in the DeFi space, significantly advancing decentralized trading. According to DeFiLlama, the total value locked (TVL) in Uniswap's concentrated liquidity is close to $4 billion. However, liquidity providers can only profit from trading fees, without directly benefiting from market price fluctuations. This creates a significant opportunity for the introduction of grid trading strategies.

By integrating grid trading into decentralized exchanges, liquidity providers will be able to:

• Directly profit from market price fluctuations

• Continue earning trading fees simultaneously

This innovation offers liquidity providers additional revenue streams, enhancing their return on investment.