Liquidity Concentration

Derivable liquidity is concentrated by Liquidity Providers in each pool with different leverages and configurations. As market forces come into play, the liquidity will naturally settle into an equilibrium concentration based on the supply and demand of each index.

Concentrated Leverage Liquidity

As derivatives pools can be created with any leverage and configuration, Liquidity Providers and traders have the flexibility to filter, sort, and choose which pool at each leverage they want to participate in using the Leverage Depth chart.

Each pool's height represents its liquidity, while its opacity represents the stability of the effective leverage. Pools that are closer to the deleverage stage will appear more transparent, indicating a higher level of risk.