Providing Liquidity
Providing liquidity means making assets available for swaps inside a price range and receiving a share of the fees generated there.
What you provide
A market contains two assets. A range that surrounds the current price normally requires both. A range entirely above or below the current price begins with one asset because it is waiting for price to trade into it.
What trading does to the position
As traders exchange one side of the pool for the other, the token mix of an active position changes. Once price moves beyond a boundary, the position becomes one-sided and no longer earns fees until price returns.
What you earn
Swap fees accrue to active liquidity ranges crossed by trades. A position's share depends on how much liquidity it has at those prices relative to other active liquidity.
What you are risking
Liquidity returns should be compared with simply holding the original assets. Price movement, contract defects, token restrictions and chain availability can all affect the outcome.
Explore Fables documentation
Use the documentation rail to move between market mechanics, liquidity, rewards, FABLES and protocol references.