🧑‍🏫Introduction

Liquidity Infrastructure for Concentrated DEXs

Rivera Money is a permissionless liquidity management protocol that transforms concentrated positions into DeFi-composable yield tokens. Yield tokens are minted by Rivera ALM Vault which ensures users’ assets are concentrated in the ‘active’ range and generates optimal yield.

Uniswap V3 introduced concentrated liquidity and came with many improvements over its predecessor. It offers high capital efficiency for market-makers and reduces price impact for traders. However, it has one big flaw that it is not very composable. On Uniswap V3, each position is represented by the NFTs rather than the fungible tokens widely used in the DeFi ecosystem. This not only makes Uniswap V3 positions cumbersome to manage but also harms their adoption in DeFi.

Rivera is changing that with its unique approach to active liquidity management. Rivera’s ERC-4626 Vaults standardize liquidity ranges and wrap concentrated positions in the form of ERC-20-based yield tokens. Because these tokens are fungible “out of the box”, developing different strategies, dApps, and protocols on them becomes easier.

With the latest development of Uniswap V4, Algebra V2, Balancer V2, and more, it is clear that concentrated liquidity is here to stay. The innovations by leading protocols combined with Rivera’s newfound composability open up a world of opportunities that can be built on concentrated liquidity. This will empower more applications for DeFi and higher liquidity for the concentrated DEXs.