As a DEX, Cetus enables seamless, secure and trustless trading of digital assets on Aptos and Sui. It also provides liquidity to the ecosystem by allowing LPs to stake their digital assets and earn rewards.
As a concentrated liquidity protocol, Cetus allows users to trade with leverage, providing them with the opportunity to earn more rewards. It also enables LPs to earn more rewards by providing them with more liquidity.
Cetus is a new crypto trading platform that is looking to redefine the way that capital is used in the ecosystem. By using a concentrated liquidity algorithm, they are hoping to make it so that both liquidity providers and traders can benefit from the system. This would allow for LPs to earn transaction fees more efficiently and would also help to keep the prices more stable.
What is concentrated liquidity?
The Core offering of Cetus is about concentrated liquidity, which allows users to add their liquidity within custom price ranges. In AMM protocols, which are adopted by most of common decentralized exchanges nowadays, liquidity is distributed uniformly along the entire price curve. However, Cetus' unique approach allows users to select their own price ranges, which leads to more efficient price discovery and faster trading.
In addition, Cetus also allows users to trade directly with each other, without the need for a centralized order book. This not only reduces the fees associated with trading, but also makes it much faster and easier to trade.
The problem is that when the price of a trading pair increases or decreases, it can be hard to tell which way the liquidity provider will move. If you're not careful, you could end up on the wrong side of the trade.
This is why it's important to pay attention to the price of a trading pair. If you see that the price is moving in one direction, it's a good idea to watch the liquidity provider's position. If they start to buy or sell the other token in the pair, it could be a sign that the price is about to move in the opposite direction.
Of course, this is just one tool that you can use to help you make better trades. But it's a good idea to keep an eye on the liquidity providers because they can give you a clue about where the price is headed.
Overall, Cetus' unique approach to liquidity and trading makes it a much more efficient and effective way to trade cryptocurrencies. If you're looking for a more efficient way to trade, then Cetus is definitely worth checking out.
Now, let's get into how Cetus works as a concentrated liquidity, you can follow instructions below:
Guide on how to Swap and Add liquidity using Aptos Network
Swap on Cetus
1. Enter https://app.cetus.zone/ and Connect your Wallet. We support many wallets, such as Martian, Petra, Pontem, Fewcha and Spika, however, we will use Martian as an example to show
2. Choose your target asset and Enter the amount
2. Set your Slippage tolerance for this trade. In this example, we will use 1% slippage tolerance.
How to Add Liquidity
- Check out all the listed trading pools on Cetus and choose the assets trading pools that you want to provide liquidity. There are more pools to be shown on our dapp.
2. Enter the amount of assets on any side of target liquidity pool.
How to Remove Liquidity
- Click ‘Pool’ Page to check your position so you will see ‘Remove’ option at the left.
2. Enter the amount that your want to remove liquidity. We provide several boundaries including 25%, 50%, 75%, 100% for users to quickly select or users can always drag the bar to adjust the right amount.
That's it!!!
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The social links below can connect you with the author.
Twitter Handle: @longs_on_downs
Discord: Crypuser#0804
