Definitions

  • Bin: A discrete price range where liquidity can be deposited. Each bin represents a specific price point with a defined width.

  • Bin Step: The percentage difference between consecutive bins (e.g., 1 basis point = 0.01%).

  • Active Bin: The bin containing the current market price where swaps are occurring.

  • Liquidity Provider (LP): User who deposits tokens into one or more bins.

  • Position: Collection of LP tokens across multiple bins belonging to a single user.

  • Composition Fees: Trading fees distributed based on bin activity and liquidity.

  • Volatility Accumulator: Metric tracking market volatility to adjust dynamic fees.

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