Liquidity Pools

Providing liquidity on Sunder Finance utilizes the Concentrated Liquidity AMM (CLAMM) model, enabling liquidity providers (LPs) to maximize capital efficiency and earnings.

Steps to Provide Liquidity

1. Select a Token Pair
   Choose the pair of tokens you wish to provide liquidity for (e.g., WHYPE/USDC).

2. Set a Price Range
   Define the upper and lower ticks to specify the price range within which your liquidity will be active.

   • Your liquidity is only utilized when the trading price falls within these bounds.

3. Deposit Capital
   Place your capital within the specified price range to begin earning fees, emissions, and bribes.

Key Considerations

• Liquidity Staking Users can choose to stake thir liquidity positions to earn a portion of emissions deposited into the pool and forego the trading fees.

• Risk of Illiquidity:
  If the trading price moves outside your specified range, your liquidity will not be utilized, and earnings will cease until the price re-enters the range.

• Rebalancing:
  Regular monitoring and adjustment of your price range may be necessary to align with market conditions and maximize returns.

There is also a dynamic fee module that automatically adjusts the fee rate based on the volatility of the pool.