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  • Concentrated Liquidity
  • Non-Fungible Liquidity Positions
  • Active Liquidity & Price Ranges
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V3

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Last updated 8 days ago

DragonSwap V3 introduces LP NFTs, allowing liquidity providers to control how they supply liquidity.

Concentrated Liquidity

V3 allows liquidity providers to allocate liquidity within a specific price range, making capital use more efficient.

Example: Instead of distributing $10,000 across the entire price range, a provider can concentrate liquidity within $1.5-$2.0, increasing fee earnings within that range.

Non-Fungible Liquidity Positions

LP tokens in V3 are issued as NFTs, representing liquidity positions and accrued trading fees. These NFTs act as receipts and provide flexible liquidity management.

Active Liquidity & Price Ranges

Liquidity earns fees only when market prices are within the provider’s specified range. When prices move outside the range, liquidity becomes inactive but remains secure.