Liquidity Provision
Last updated
Last updated
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.