Concentrated liquidity for TerraSwap

Does anyone know why concentrated liquidity isn’t supported in TerraSwap? Is it due to a lack of demand from users or a lack of development resources?

The absence of concentrated liquidities results in:

  1. Capital inefficiency: most of the liquidity remains unused, distributed along the constant product curve. This problem is even worse for stablecoin pairs.
  2. High level of slippage for low volume assets.
  3. LPs are not incentivized to offer liquidity to begin with.

Then this problem becomes a classic chicken & egg problem: low efficiency → less LPs → less liquidity → higher slippage → even worse efficiency → …

We are a group of three developers based in the Bay Area and were thinking about building a hybrid version of liquidity pools for both stablecoin & mAssets (for instance something close to for stablecoins and concentrated liquidity for <mAsset, UST> pairs). Any comments on the demand for such a feature or the feasibility of the idea would be greatly appreciated!


Hey -

A Delphi Digital-incubated team is currently building actually building exactly what you have mentioned (similar to Trident for Sushiswap).

It will provide support for both Curve AMM and concentrated liquidity (Introducing Astroport: A Next-Generation AMM on Terra | by Astroport | Jul, 2021 | Medium).


Ah, thanks for the pointer! Appreciate it.