V3 Add Liquidity (concentrated)

V3 introduces the capability for liquidity providers to focus their capital in chosen price intervals, enhancing liquidity at favored price points. It offers users the option to select between manual mode and auto mode, where the latter facilitates automated alterations of the price ranges.

You can access data about token pairs on the pools V3 tab or the analytics page

To contribute liquidity to V3, go to the Trade section, click on Liquidity, and then select V3.

1. Choose a Trading Pair

Begin by choosing the trading pair you wish to utilize for liquidity provision. Consider aspects such as trade volume, total value locked (TVL), and possible future price fluctuations.

Additionally, verify if the pair qualifies for market maker rewards (as per V3 manual), offering an extra layer of earnings besides the LP trading fees, or if it's eligible for $DSP incentives (in V3 automatic mode).

Unlike typical $YUM farms for Version 2 spNFT and Version 3 AUTO mode positions, Market Maker incentives are allocated through the Sprinkle method. This method involves verifying onchain data for pools eligible for incentives using an offchain script.

Rewards are distributed every 6 hours, based on the quantity of tokens accumulated and the fees gathered by your position in that period. Consequently, the more confined the range, the greater the rewards for the market maker.

The exact distribution formula for market maker rewards

1. Choose a Mode

Your choice of mode should align with your desired level of involvement and expertise:

• Manual Mode: Ideal for seasoned liquidity providers, it offers the freedom to personally manage and set the price ranges for their liquidity contributions.

• Auto Mode: Designed for a hands-off approach, this mode utilizes specialized liquidity management tactics to autonomously optimize and adjust price ranges on behalf of the user.

When liquidity is supplied manually, it establishes positions solely as Liquidity Providers (LP), enabling the earning of trading fees and market maker rewards.

On the other hand, automatic liquidity provision results in the creation of positions as spNFTs, allowing for the accumulation of trading fees, farming emissions, and Nitro incentives concurrently.

A position in manual mode cannot be deposited into the Nitro pool

Auto mode (spNFT)Manual mode (LP only)