Understanding Bins & the Active Bin

What Are Bins?

  • Each bin represents a discrete price level.

  • Liquidity is concentrated into bins instead of spread across a continuous curve.

  • Bins are stacked vertically, meaning multiple LPs can deposit into the same bin and share volume.

What is the Active Bin?

  • The bin where the current market price sits.

  • Only liquidity in the active bin earns swap fees.

  • As price moves, new bins become active, and LPs must rebalance to stay in range.

See guides and management options for out of range positions here

Example:

If price is in Bin 120:

  • Only LPs in Bin 120 are earning.

  • If price moves to Bin 121, LPs in Bin 120 must move forward to stay active.

⚠️ Passive LPs may stop earning if their bin becomes inactive.

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