How Concentrated Liquidity Market Making on QuickSwap DEX Generates 220% APR on ReHold

Blockchain technology has grown tremendously over the years as decentralized finance (DeFi) continues to evolve and contribute enormously to the evolution of the crypto space as it has become an integral part of the world of cryptocurrency.

Decentralized finance has seen many innovative ideas in recent times as most protocols are focused on helping traders and investors earn passively in both bull and bear market conditions through different means, such as yield farming, lending and borrowing, and earning as a validator. These innovative ideas encourage passive earning as high as 220% APR on your crypto assets.

One such protocol ensuring traders, liquidity providers, and investors earn up to 220% APR trading dual investment strategies is the ReHold protocol that leverages the concentrated liquidity market maker (Uniswap V3, QuickSwap, PancakeSwap, Trader Joe, and others), to enable users to earn huge APR within a period of 12 to 24hrs of staking their cryptocurrency assets.

This article focuses on QuickSwap CLMM, QuickSwap DEX benefits, Understanding Concentrated Liquidity to improve your Investment strategy, and how to leverage ReHold protocol strategies to earn as high as 220% APR quickly.

The Mechanics of ReHold and Its Role Play In The DeFi Landscape

ReHold protocol is a smart contract algorithm derivative built over concentrated liquidity like QuickSwap CLMM, Uniswap V3, PancakeSwap, and , Trader Joe, and others to enable users to open short-term Duals with high annual returns of up to 220% within 12 to 24 hours.

With the help of QuickSwap concentrated liquidity market maker (CLMM) on the Polygon network, traders can set precise price ranges within these concentrated liquidity pools to initial a dual investment plan with varieties of token pairs.

ReHold’s dual investment strategy is one of its kind because of its strategy to help both beginners and pro investors to earn consistently despite the tough market condition at low gas fees and the opportunity to trade early crypto assets with its integration to list coins very early for traders.

ReHold integration to leverage on concentrated liquidity of different decentralized exchanges like QuickSwap provides traders more opportunities such as capital efficiency, individualized price curves as a result of its active adjustments of assets at specific price ranges, opportunities to earn more by providing liquidity to pools, and better management of slippage and impermanent losses.

The protocol generates earnings by providing liquidity in QuickSwap liquidity pools (LPs) through concentrated liquidity. The protocol places user assets within a specific price range of the pool curve, collects all fees paid by traders operating within that range on QuickSwap, and returns user assets along with their yields to the users.

Such efficient utilization of concentrated liquidity on QuickSwap is possible due to the unique ReHold algorithm. This algorithm can accurately identify the optimal range that will yield the highest returns.

Understanding Concentrated Liquidity and Market Makers

Market making has long been associated with Automated market makers (AMM) as this smart contract algorithm played a huge success in the growth of the DeFi space, making it easy for token swap without the need for traditional buying and selling as users can buy and sell tokens instantly in a permissionless and automatic way.

AMM technology is a unique blockchain technology first built on the Ethereum network. Liquidity providers and liquidity pools are a great component of this technology, leading to other DeFi opportunities like yield farming, lending and borrowing, and even flash loans.

With such great ideas from the AMM technology, it had flaws in terms of high slippages as traders try to front-run transactions during buying or selling assets. Impermanent loss has affected many liquidity providers. These reasons have led to the birth of concentrated liquidity to address these problems and provide liquidity providers and traders with better opportunities.

Concentrated liquidity market maker (CLMM) is a new generational automated market maker (AMM) aimed at increasing the capital efficiency of decentralized exchanges (DEXs) while at the same time acting as a source of yield for liquidity providers.

Concentrated liquidity helps liquidity providers manage their capital as they provide liquidity or deposit their assets in liquidity pools with a specific price range, enabling them to earn revenue from trading fees through yield farming.

AMM systems of trading have been used in earlier times by most decentralized exchanges, but with the growth of concentrated liquidity as it provides many advantages in low slippages and impermanent losses, better earning for liquidity providers, capital efficiency by encouraging portfolio diversification leading to many DEXs including QuickSwap have adopted concentrated liquidity.

The QuickSwap DEX Landscape

QuickSwap was previously run as a traditional automated market maker but has leveraged the new concentrated liquidity feature, making the QuickSwap CLMM compatible with the DEX application. It allows users to add token pairs into liquidity pools and earn transaction fees from others who swap tokens in the liquidity pools.

QuickSwap has gained popularity in the DeFi space because of its low transaction fees. It is built on the Polygon network with high transaction speed, making the DEX app highly compatible with ERC-20 tokens, highly usability case, and affordable for many users.

The Quickswap CLMM model enables liquidity providers to earn as user swap tokens. ReHold leverages on QuickSwap liquidity pools to reward its users with the opportunity to earn up to 220% APR with its concentrated liquidity strategy.

Source: QuickSwap V3 Strategy Simulator https://simulator.quickswap.exchange/

The Integration of ReHold and QuickSwap DEX

ReHold integrates well with the QuickSwap CLMM model as it enables users to open a dual investment plan on the Polygon network at very low gas fees and with lightning-fast transaction completion providing better usability for its users.

ReHold integration on QuickSwap provides more liquidity for its pools as liquidity is a core factor for many DEX to operate smoothly, as this facilitates easy swapping of tokens.

The Strategy Behind ReHold’s 220% APR

ReHold’s smart contract algorithm has been designed to pull the vast majority of yield from QuickSwap as it supports concentrated liquidity. The smart contract algorithm selects supported blockchains associated with Ethereum, Polygon, Optimism, Or Arbitrum, depending on the most suitable liquidity, and spits the dual investment into the best suitable pool.

With the introduction of stablecoins, ReHold’s protocol can mitigate risk when there are imbalances in the liquidity pools to allow users to earn. The rewards of staking plans vary due to liquidity and market volume; ReHold’s mechanism will always adjust staking plans to reduce losses and provide the best suitable APR for users.

Conclusion

Liquidity providers and liquidity pools are a core part of decentralized finance, providing more earning opportunities. With many DEX leveraging on the use of concentrated liquidity, many can use the DEX app to generate more passive income.

The ReHold protocol mechanism has come to stay as it aims to help users earn up to 220% APR and enable lightning-fast transactions at a low transaction fee, with its integration spanning to different networks to ensure users enjoy a seamless investing experience while staking their crypto assets.