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  1. ALMM

Liquidity Provision

PreviousTrading MechanicsNextDynamic Fees

Last updated 9 days ago

  • LPs deposit assets into specific bins or ranges, crafting a liquidity shape:

    • Spot: Flat distribution across a range (e.g., $2-$3).

    • Curve: Concentrated around the current price (e.g., 80% at $2, tapering off).

    • Bid-Ask: Heavy at range edges (e.g., $2.9 and $3), like limit orders.

  • Only the active bin earns fees, incentivizing precise placement.