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Hyperlynx uses Uniswap V3-style concentrated liquidity. Instead of spreading your capital across every possible price, you choose a price range to provide in. Inside that range, your liquidity is deep and earns fees. Outside it, it earns nothing.
The same capital concentrated in a tight range provides far more depth — and earns far more fees — than the same capital spread thin. You're rewarded for putting liquidity where trading actually happens.
The trade-off: if the price leaves your range, your position stops earning until the price comes back or you re-range.
Range
The price band you provide liquidity in.
In-range
Price is inside your band → you earn fees.
Out-of-range
Price has left your band → you earn nothing until it returns.
Fee tier
The pool's fee (0.05% / 0.30% / 1.00%) — your share of it depends on your in-range depth.
When the price moves, an LP position rebalances between the two tokens. The result can be worth less than simply holding the two tokens — this is impermanent loss. Concentrated ranges can earn more fees but also feel IL more sharply. Fees earned can offset it; wide ranges soften it.
Providing liquidity is not risk-free. Understand impermanent loss and choose a range that matches how much you expect the pair to move. Nothing here is financial advice.
Ready to do it? See Provide liquidity.
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