Bin Step
The entire price range is divided into Bins, which can be described as liquidity containers representing specific price intervals within the pool. The size of each bin is determined by the Bin Step, measured in basis points (bps) of price change.
The Bin Step defines the price difference between the boundaries of two adjacent bins and is expressed in basis points (bps), i.e., hundredths of a percent. This mechanism functions similarly to the concept of tick spacing in protocols like Uniswap, where price movements occur in fixed increments rather than continuously.
Preset Options
In the user interface, there are typically three preset bin step options:
- 0.05% for stablecoin pairs, where prices move very slightly, reflecting their typically low volatility.
- 1% for common trading pairs, balancing price granularity and efficiency.
- 3% for memecoins or highly volatile tokens where wider price intervals help manage rapid price fluctuations.
Optimization
Choosing an appropriate bin step is important for optimizing liquidity provision efficiency. Smaller bin steps provide finer price granularity but may require more liquidity distribution, while larger steps simplify liquidity management but can reduce price accuracy.
If a customized bin step value is needed beyond the standard presets, the protocol team offers the service to deploy pools with any desired bin step. Interested users or projects should contact the team for such customizations.
