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Liquidity Pools

PartyDEX uses a concentrated liquidity model (Uniswap V3-style). Each position has a lower tick and upper tick that define where your liquidity is active. This page covers the PartyDEX-specific mechanics — fee tiers, position management, locking, and transfers.

Fee Tiers

Fee tiers range from 1 to 100 bps (0.01% to 1.00%) in 1 bps increments — 100 possible tiers. LPs choose their fee tier when adding liquidity. Each fee tier determines tick spacing, the minimum granularity for position boundaries.

Fee TierFee RateTick SpacingTypical Use
1 bps0.01%1Stable pairs (e.g., USDT/USDC)
5 bps0.05%10Correlated assets
30 bps0.30%60Most trading pairs
100 bps1.00%200Exotic / volatile pairs

The same token pair can have pools at multiple fee tiers running simultaneously. Each pool maintains its own price, liquidity, and fee accounting. The smart router selects the top pools (up to 3) by quote-side reserve depth and splits orders across them and the order book. Pools below the minimum liquidity threshold cannot be routed to.

Position Rules

All liquidity operations draw from your trading balance. Returns (principal, fees, excess tokens) are credited back to your trading balance.

  • Minimum value: Positions must be worth at least $1 to create or maintain after a partial decrease.
  • Max positions: 10 per account per market.
  • Fee accrual: LPs receive 90% of swap fees; 10% goes to the protocol. Fees accrue in both base and quote tokens proportional to your share of in-range liquidity.
  • Fee collection: You can collect accrued fees without changing your position. If accrued fees are below the $1 minimum, the collect call is rejected — but fees are automatically returned when you decrease or close.
  • Increase: Add more liquidity to an existing position at the same range. To change your range, close and open a new position.
  • Partial decrease: Must leave the position above the $1 minimum. Charges an operation fee.
  • Full close: Returns principal + all uncollected fees in one operation, no operation fee. close_all_positions does this across every unlocked position at once.

Position Locking

You can lock a position until a future date, preventing withdrawals while still allowing fee collection and liquidity increases. Locks are a one-way ratchet: you can extend them, but never shorten them. The minimum lock duration is one day.

Locking is useful for signaling commitment to a project's liquidity — locked positions can still be transferred to another account if needed.

Position Transfer

Ownership of a position can be transferred to another principal. The position stays exactly as it is — same range, same liquidity, same accrued fees — only the owner changes. This works even for locked positions; the lock transfers with it.

Slippage Protection

All liquidity operations accept minimum amount parameters. If the pool price shifts between when you preview and when your transaction executes, and the resulting token amounts fall below your minimums, the operation reverts entirely. You never get a worse deal than you signed up for.

What's Next

For exact API fields, parameter types, and response formats, see the Spot API reference. For how concentrated liquidity interacts with the order book, see Smart Routing.