For the complete documentation index, see llms.txt. This page is also available as Markdown.
V3
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.
