When you trade on a concentrated liquidity DEX, a type of decentralized exchange that lets liquidity providers focus their funds within specific price ranges. Also known as CLAMM, it’s a game-changer for how crypto trades happen—no more spreading your money thin across every price point. Traditional DEXs like Uniswap v2 forced you to spread your tokens across the entire price curve, which meant most of your capital sat idle. Concentrated liquidity fixes that. You pick the range where you think the price will move, and only your funds in that zone earn trading fees. It’s like renting out only the rooms in your house that guests actually use—not the whole building.
This shift didn’t come out of nowhere. It’s built on top of PancakeSwap v4, a DEX on Binance Smart Chain that uses concentrated liquidity to slash fees and boost capital efficiency by up to 90%. The same idea powers other platforms, but PancakeSwap v4 made it real for everyday users. It’s not magic—it’s math. By focusing liquidity, providers earn more per dollar, and traders get tighter spreads. That’s why it’s replacing older models. But there’s a catch: if the price moves outside your range, your funds stop earning fees. You’re not just a provider—you’re a market maker, and that means you need to watch the charts.
It’s not just about saving money. CLAMM, the concentrated liquidity mechanism behind PancakeSwap v4, lets you stack rewards faster. You can even layer in yield farming or staking on top. But this isn’t for beginners who just want to hold and wait. If you’re new, you might get wiped out by impermanent loss when the market swings hard. That’s why most posts here focus on experienced users testing the edges—like ShadowSwap on Core or StellaSwap on Polkadot—where liquidity is thin and risks are high. The posts you’ll find below don’t just explain how concentrated liquidity works. They show you who’s winning, who’s losing, and which DEXs actually deliver on the promises.
Whether you’re looking at how Tether’s USDT.e moves on Avalanche or how a meme coin like DRDR gets traded on a low-liquidity DEX, the same rules apply: capital efficiency is king. The best traders aren’t the ones with the biggest wallets—they’re the ones who know where to put their money and when to pull it out. That’s what concentrated liquidity DEXs give you: control. And in crypto, control is the only real advantage you’ve got.
mySwap on Starknet is a low-fee, concentrated liquidity DEX ideal for traders and liquidity providers on Starknet. With faster trades, lower gas costs, and a clean interface, it's the top choice for ETH, STRK, and stablecoin swaps - despite its limited token selection.