source avatarNEDİM.ink 🚢

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Hey everyone, I was looking through @metricxyz ’s docs on liquidity bins today and the way they stay aligned with the reference price clicked for me. In an active pool the Price Provider sets the quote while liquidity sits in percentage ranges (bins) around that reference. Halfway through a +1% to +2% bin means +1.5% deviation, so a $100 reference produces a roughly $101.50 pool price before the spread. If the reference then moves to $110 with no trades at all, the pool price simply becomes about $111.65 while the deviation, token balances, active bin and LP ownership stay exactly the same. Unlike classic concentrated-liquidity designs, LPs don’t have to pull and redeposit just to keep following the price. Trades start in the active bin and continue into the next once liquidity there is used up, pushing the deviation up or down depending on the direction. The whole setup keeps the pool’s liquidity structure intact as the underlying reference changes. @yurisdiction (📷According to X rules, a paid partnership has been selected. It is not investment advice or a paid partnership.)

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