Liquidity on Alandale
Providing liquidity means depositing a pair of tokens so others can trade against them. In return you earn LUTE emissions (sized by how much your pool won in the epoch's vote). Alandale offers two kinds of pools on one spectrum of effort vs. capital efficiency.
Classic (v2)
Full-range liquidity across the whole price curve (constant-product x·y=k, or a Solidly stable curve for pegged pairs).
Simple, hands-off LPing; stable pairs; beginners.
Concentrated (CL)
Liquidity placed inside a custom price range (Algebra Integral). Far more capital-efficient, but only earns while price is in your range.
Active LPs seeking maximum efficiency and emissions.
The one rule that matters
Your liquidity only earns while it's actually being traded.
A classic position is always in range (it spans the whole curve), so it's always working.
A concentrated position earns only while the price is inside your chosen range. In range = active (earning). Out of range = inactive (no emissions).
Choosing between them is a trade-off:
Classic = set-and-forget, lower capital efficiency, always in range.
Concentrated = much higher efficiency and emissions per dollar when in range, but you have to manage the range as the price moves.
What sets your rewards
Your LP APR comes from four factors:
The pool's vote weight: a pool with no votes emits nothing to its LPs.
Your share of that pool's liquidity.
The LUTE price: emissions are paid in LUTE.
For CL: staying in range: out-of-range liquidity earns nothing.
New to LPing?
Start with a Classic pool or a stable pair; they're always in range and need no maintenance. Move to Concentrated once you're comfortable managing a range. Read on:
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