Concentrated liquidity
In a V2 pool, your liquidity covers every possible price. Most of it sits at prices the pool never reaches, so it earns little. In a V3 pool, you choose a price range. Your tokens only trade while the price is inside it. The same deposit earns a larger share of fees, because it’s concentrated where trading happens. The tradeoffs:- Out of range, you earn nothing. If the price leaves your range, your position becomes 100% one token and stops earning until the price comes back or you move it.
- You manage it. A narrow range earns more but goes out of range more often.
- Each pool has a fee tier. BDEX V3 pools charge 0.05%, 0.30% or 1.00%, and the same pair can have a pool on each tier.
Positions are NFTs
V3 positions aren’t fungible, because each one has its own range. The NonfungiblePositionManager mints each position as an NFT. You use it to:minta new position with a pool, a tick range and amounts of both tokens,increaseLiquidityanddecreaseLiquidityon an existing position,collectthe fees and withdrawn tokens,burnthe NFT once the position is empty.
decreaseLiquidity moves the tokens into the position’s owed balance, and collect sends them to you.
The NonfungiblePositionManager is at 0xDAc3FcFF004d8a8675b94E44941A1a2e3b240090 on both mainnet and testnet. See Contract addresses.
Ticks and ranges
Prices in V3 are expressed as ticks. Each pool only accepts ticks that are a multiple of its tick spacing, which depends on the fee tier. Picking a range means converting the prices you want into valid ticks for that pool. Libraries such as the Uniswap V3 SDK do this math, and BDEX V3 uses the same model.Manage positions
For full instructions on minting, adjusting and closing positions, see BOT Chain’s DEX documentation. To list pools and check their liquidity before you choose one, use the BDEX API.V2 or V3
If you want to provide liquidity without watching it, start with V2 liquidity.
Next steps
Provide V2 liquidity
Add and remove liquidity with a script.
Swap on BDEX V3
See how V3 pools quote.