Adding Liquidity
Introduction to Liquidity Provisioning
Concentrated Liquidity pools allow liquidity providers (LPs) to supply liquidity within custom price ranges, instead of across the entire 0 to ∞ range like traditional constant product AMMs (such as Uniswap V2-style DEXes).
By selecting a specific price range, LPs can maximize capital efficiency and earn higher fees when the market price stays within their chosen range. However, if the price moves outside that range, the position becomes inactive and stops earning fees until the price re-enters the range.
This model gives LPs greater flexibility, precision, and earning potential—but also requires more strategic input and occasional rebalancing.
Liquidity Provisioning Modes
An Algebra-powered DEX allows for Manual and Automated modes of liquidity provisioning.
What is an Automated Liquidity Manager (ALM)?
An Automated Liquidity Manager (ALM) is a tool or strategy that automatically manages your liquidity position on a DEX. Instead of manually adjusting your price ranges or rebalancing assets, the ALM does it for you based on market data and predefined strategies.
Why Use One?
By using an ALM from one of our trusted DEX partners, you get:
Hands-Free Optimization — Your position stays within profitable ranges automatically Higher Fee Earnings — ALMs aim to maximize APR by keeping liquidity active Risk Management — Smart rebalancing helps reduce impermanent loss Trusted Technology — Built and battle-tested by top DeFi teams for better performance and security
Whether you're new to providing liquidity or looking to optimize your returns, an ALM makes it easier to earn more—without constant monitoring.
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