Overview
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CenturionDEX v3 differs substantially from CenturionDEX v2. Although CenturionDEX v3 pools still consist of two tokens and retain a constant-product structure, they introduce a new mechanism known as concentrated liquidity. Under this model, liquidity providers select the price interval in which their capital will be active. As a result, the reserves associated with a given position are designed to support trading only within that chosen range. If the market price moves outside the interval, the position is converted entirely into one of the two tokens, depending on whether the price falls below the lower bound or rises above the upper bound.
A natural consequence of concentrated liquidity is that positions become highly individualized. Liquidity providers choose not only how much capital to deposit, but also the specific price range over which that capital is deployed. For this reason, positions in a CenturionDEX v3 pool are inherently non-fungible. Instead of receiving fungible LP tokens, liquidity providers receive non-fungible tokens that record the parameters of their particular position. Moreover, because liquidity is now customized by range, trading fees are no longer automatically reinvested into the pool as additional liquidity. Instead, they accrue separately to each position and must be accounted for and collected independently.
Repositories
- v3-core — Factory, Pool, and supporting libraries
- v3-periphery — Router, PositionManager, Quoter, Migrator, and Staker