Range-bound liquidity pools
What is the difference between standard liquidity pools and range-bound liquidity pools?
The Bullish exchange currently offers two types of liquidity pools for trading asset pairs on its platform: standard liquidity pools and range-bound liquidity pools. Standard liquidity pools provide liquidity across all price points, from zero to infinity, on a price curve. Range-bound liquidity pools provide liquidity within a specified price range. By setting price boundaries within a liquidity pool, range-bound liquidity pools enhance capital efficiency for participants by concentrating liquidity—increasing the depth of liquidity within the specified price range.
Range-bound liquidity pools provide deeper liquidity within the specified price range, closer to the mid-price.
Note that automated market making is available for our standard liquidity pools and within the upper and lower price boundaries of our range-bound liquidity pools only. When trading outside the price boundaries of range-bound liquidity pools, liquidity is no longer provided by the pool, and may no longer be predictable.
Margin trading is not available in range-bound liquidity pools due to the higher risk of liquidation. Margin trading is still available in standard liquidity pools.
In range-bound pools, earning is currently only available to institutional customers.
Trading and earning availability:
|Pairs||Standard liquidity pool||Range-bound liquidity pool||Margin trading|
The minimum withdrawal period is one hour for range-bound liquidity pools. The seven day removal period still applies to standard liquidity pools. All liquidity pool withdrawals are transferred to a client spot account.
Liquidity provider risks
Learn more about potential risks for liquidity providers.