Concentrated liquidity refers to the concentration of liquidity, or the ability to buy and sell an asset, in a small number of market participants or trading venues. This can happen for a variety of reasons, such as the presence of large market makers or the dominance of a few dexes in a particular market.
It can provide more stability to the market, as there are fewer participants that can potentially affect the price of an asset. It can also make it easier for traders to execute large orders, as there are fewer counterparties to potentially absorb the trade.
Phase 2 - Decentralized Autonomous Organization
A DAO, or decentralized autonomous organization, is a type of digital organization that is run using smart contracts and blockchain technology. In a DAO, users can use SKULL tokens to participate in the decision-making process by voting on proposals and potentially even creating new proposals if their holdings of SKULL tokens are sufficient.
Users can earn SKULL tokens by participating in the DAO in various ways, such as by contributing to the development of the organization or by providing valuable services to the community. The more SKULL tokens a user holds, the more influence they may have in the decision-making process.
To vote on proposals, users can use their SKULL tokens to cast a vote in favor or opposition to a particular proposal. The outcome of the vote is determined by the total number of SKULL tokens held by users who voted on the proposal. If a user's holdings of SKULL tokens are above a certain threshold, they may be able to create their own proposals and submit them to the DAO for consideration.
In a DAO, decisions are made in a decentralized manner, meaning that there is no central authority dictating the actions of the organization. This can provide a level of transparency and accountability, as all decisions and votes are recorded on the blockchain and can be publicly audited.