Active Liquidity

When market prices shift beyond an LP's designated price range, their liquidity is effectively withdrawn from the pool, and they cease to earn fees. In this situation, an LP's liquidity comprises solely the less valuable of the two assets until the market price re-enters their specified price range, or they opt to modify their range to accommodate current prices.

In the Quantum Concentrated Liquidity System, it is theoretically possible for no liquidity to be present within a specific price range. Nevertheless, it is anticipated that rational LPs will consistently update their price ranges to encompass the prevailing market price.

Our automated liquidity management system helps with this by auto-rebalancing your position to keep it within an active liquidity range, thereby ensuring that you don't miss out on the trifecta of rewards. You don't even have to monitor it all the time. Read more about it ahead in the whitepaper.