Kodiak
Berachain’s Native Liquidity Hub.
Last updated
Berachain’s Native Liquidity Hub.
Last updated
BEX is the official DEX of Berachain but operates solely on the Uniswap V2 model. In contrast, Kodiak is a more advanced DEX that builds on both the Uniswap V3 and V2 models. Kodiak raised $2M in Feburary 2024.
As a reminder:
Uniswap V2: Liquidity providers provide liquidity across the entire price range of a trading pair. This means their liquidity is spread evenly, which can lead to inefficiency, especially if the token's price tends to stay within a specific range.
Uniswap V3: Concentrated liquidity allows liquidity providers to allocate their capital to specific price ranges where they expect the most trading activity. This approach improves capital efficiency by concentrating liquidity where it is most needed, enabling LPs to earn higher returns as their capital is more effectively utilized in active trading zones.
There are three ways you can provide liquidity to tokens-pairs on Kodiak:
Full-range LP (like Uniswap V2)
Concentrated LP (like Uniswap V3)
Automated Liquidity Manager (Kodiak Islands)
The "Kodiak Islands" aim to propose the best of both Uniswap V2 and Uniswap V3. It refers to concentrated liquidity positions that track a pool's trading, ensuring the position remains relevant and doesn't fall out of range like in Uniswap V3. However, unlike Uniswap V2's full-range liquidity, these positions are concentrated within a narrow range.
These are farms for eligible Islands that are incentivized with one or more token rewards. By staking and locking liquidity for up to 30 days, users can boost rewards and customize their staking strategy with multiple locks.
Panda Factory is an upcoming no-code deployer enabling anyone to launch new tokens with unruggable liquidity on Berachain.
Links:
Learn how to interact with Kodiak .
Twitter: Discord:
