THENA, Gamma Strategies, & Algebra’s creation FUSION boosts CL management
The coming together of THENA, along with Gamma Strategies and Algebra, has brought about FUSION. This will help simplify Concentrated Liquidity (CL) and simultaneously work on capital effectiveness and overall user exposure. Where concentrated liquidity is concerned, it provides Liquidity Providers (LP) the opportunity to target their funding that lies within particular price brackets where the requirement is greater.
This helps increase the efficiency levels for trading and generate higher fees for the LPs, all the while lessening the chances of slippage where the traders are concerned. However, there are certain drawbacks in the case of CL. For one, it can be highly complicated, as well as a matter of impermanent loss.
The impermanent loss occurs in the situation of the fluctuation in asset pricing. This brings about unbalanced token pairs for the LPs. This is where Gamma comes in, being a part of FUSION, and helps to rectify the price brackets for LPs to be able to increase.
Revenue from fees as well as lessening the scope of impermanent losses. Through all of this, FUSION becomes instrumental in making CL more readily available as well as easier to use.
FUSION offers a flexible array of LP strategies in the case of an unstable market and other assets. There are the narrow, wide, and manual modules where the unstable assets are concerned. In the case of the narrow module, the attention is on a leaner price bracket between two assets. The wide module looks at the allotment of liquidity over a more comprehensive price bracket between two assets.
Where the manual module is concerned, it offers the opportunity for LPs to be able to fix their own price brackets and make the necessary adjustments as and when required. In the case of THENA 2, there are three classifications. One is stable, the other is V1, and then there is FUSION.
FUSION was developed with the assistance of Three Sigma, a leading blockchain engineering, research, and investment firm. FUSION is renowned for its modular design and simple integration with multiple liquidity managers. In the case of Gamma, users receive a fungible ERC-20 LP token that provides earning options. They can wager on FUSION gauges to earn $THE in rewards. They can invest in partner vaults to maximize returns. They may retain unstaked LP tokens to generate trading commissions.
Additionally, it improves capital efficiency. It also facilitates the integration of protocols with market-making activities. FUSION is also user-friendly.
In the case of migration, it only takes place if the user has staked liquidity in THENA’s gauges. Migration refers to transforming liquidity positioning from the old to the new gauges. This ensures continued platform participation and the receipt of more significant benefits. THENA V2 has undergone numerous modifications and enhancements and is now well-connected with DeFi and its future.