Liquidity strategies
When you provide liquidity to a DLMM pool, you choose where to place your capital across the bin range. Three canonical shapes cover the majority of use cases. This page describes each and explains when to use which.
The three shapes
Section titled “The three shapes”Spot
Uniform distribution across your selected range. Equal liquidity in every bin. Best for pools with unknown volatility or a new LP who wants to minimize complexity.
Curve
Bell-shaped, concentrated at the middle of the range. Maximum capital efficiency when you expect price to stay near the current value — ideal for stablecoin pairs.
Bid-Ask
Inverse bell — capital at the range extremes, minimal at the current price. Best for high-volatility pairs where you expect wide swings and want to capture DCA-style rebalancing fees.
Capital efficiency trade-off
Section titled “Capital efficiency trade-off”More concentration means more fees per dollar of TVL when price stays inside the range — but larger impermanent loss when price exits. The three strategies correspond to three points on that trade-off curve. A more detailed numerical analysis, including break-even formulas for each shape, will ship in a future release of this page.