V3 Add Liquidity (concentrated)

V3 enables liquidity providers to concentrate their capital within specific price ranges, leading to increased liquidity at preferred prices. Users can choose to employ both manual mode and auto mode, with the latter automating the adjustment of price ranges.

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

To provide liquidity to V3, navigate to the Trade tab, select Liquidity and choose V3

  1. Select a pair

Start by selecting the pair you want to use for providing liquidity. Take into account factors like trading volume, TVL, and the potential risk of price volatility in the future.

Also, check if the pair is incentivized with market maker rewards (V3 manual) which serve as an additional, separate layer of rewards on top of the LP trading fees, or $GRAIL incentives (V3 auto)

Unlike regular $GRAIL farms for V2 spNFT and V3 AUTO mode positions, Market Maker incentives are distributed via Merkl, which checks onchain data for incentivized pools using an offchain script.

These rewards are given out every 6 hours, depending on how many tokens you've earned and the fees your position has collected during that time. Therefore, the narrower the range, the higher the market maker's rewards.

The exact distribution formula for market maker rewards

For more specific information about how the mechanism works, you can refer to Merkl documentation

  1. Select a mode

The mode you choose depends on the specific utility you seek:

  • Manual mode is tailored for experienced liquidity providers, granting them control over the price ranges of the liquidity they provide

  • Auto mode employs focused liquidity management strategies, handling the intricate task of adjusting price ranges for users

When liquidity is provided through manual mode, positions are created as LP only and can earn trading fees and market maker rewards

In contrast, when liquidity is provided through auto mode, positions are created as spNFT and can earn trading fees, farming emissions and Nitro incentives simultaneously

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

pageAuto mode (spNFT)pageManual mode (LP only)

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