📊 TRADING & AMMS
Liquidity Shaping
Definition
Liquidity shaping is an evolution of concentrated liquidity where liquidity providers can define custom distribution patterns for their capital across price ranges. Pioneered by Maverick Protocol, it allows LPs to automatically shift their liquidity as prices move, maintaining optimal capital efficiency without manual rebalancing.
Example
Example
On Maverick, an LP can choose a 'Mode Right' shape that follows ETH's price upward, keeping liquidity concentrated around the current price without manual adjustment.
Risks to Consider
Risks
- Novel mechanism risk
- Smart contract risk
- Liquidity mode selection complexity
Common Questions
How is liquidity shaping different from concentrated liquidity?
Concentrated liquidity (Uniswap v3) requires manual range selection and rebalancing. Liquidity shaping (Maverick) adds automatic directional movement modes that shift your liquidity with the price.
