Capital Efficiency

The formula to determine the efficiency of a concentrated Quantum pool position in comparison to providing liquidity across the entire classic pool curve is as follows:

Efficiency = 1/(1-(a/b)^(1/4))

Here, 'a' and 'b' represent the respective price bounds for the position.

This equation enables a precise assessment of the relative efficiency between concentrated quantum positions and traditional classic liquidity provisions, thereby facilitating informed decision-making for liquidity providers within the whitepaper context.