> For the complete documentation index, see [llms.txt](https://docs.alienbase.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.alienbase.xyz/liquidity/v3.md).

# Concentrated Liquidity (V3)

Alien Base V3 implements Uniswap V3-style **concentrated liquidity**: instead of spreading your capital across the whole price curve, you pick a price range and concentrate your liquidity there. The result is much higher capital efficiency at the cost of being out-of-range when price moves outside your bounds.

> *Last updated: July 6, 2026.*

## Fee tiers

Alien Base V3 supports **seven fee tiers**. The right choice depends on the volatility of the pair:

| Fee        | Best for                                                |
| ---------- | ------------------------------------------------------- |
| **0.01%**  | Tightly-pegged stablecoin pairs (USDC/USDbC, USDC/USDT) |
| **0.02%**  | Standard stablecoin pairs                               |
| **0.03%**  | LSTs and very-blue-chip volatile pairs (ETH/cbETH)      |
| **0.04%**  | Wider-spread stable / LSD pairs                         |
| **0.075%** | Blue chips (ETH, BTC and wrapped variants)              |
| **0.30%**  | Mid-cap and standard tokens                             |
| **1.00%**  | Small-cap and memecoin pairs                            |

Each pool collects its tier on every swap. Pool fees are split **50% to LPs / 50% to esALB stakers** as Real Yield (paid in WETH and the underlying tokens). Full breakdown: [Fees](/reference/fees.md).

## How concentrated liquidity works

* Each LP position has a **lower price** and an **upper price**.
* While the market price is **inside** the range, the position earns trading fees and oscillates between the two assets.
* While **outside** the range, the position holds 100% of one asset and earns no fees.

A narrower range = more fees per dollar **when in range**, more frequent re-balancing needed. A wider range = fewer fees per dollar **but** less attention required.

Choose ranges that match your view of where the asset will trade.

## Two ways to provide V3 liquidity

### Option A — Vaults (Bunni-wrapped, recommended for most users)

Use the [Vaults](/liquidity/vaults.md) page. Pick a pre-configured strategy (Wide / Narrow / Ultra Narrow / Classic V3), deposit, and earn pool fees + ALB rewards. The position is wrapped as an ERC-20 share by [Bunni](/liquidity/bunni.md), which means:

* No NFT to manage.
* Composable — can be staked, locked, or used elsewhere.
* One-click Zap-in from any asset.

Range bounds are managed at the Vault level. When a Vault gets close to its bounds, a new Vault with refreshed bounds is deployed.

### Option B — Manual V3 (full control)

![New position page](/files/TM5qLYfFbYHRdidR2dOl)

Click **New position** on the [Vaults](/liquidity/vaults.md) or Dashboard page. Pick **V2 or V3** with the selector, choose your pair, fee tier, lower price, and upper price. The V3 position is created as a Uniswap-style NFT. You can:

* Choose any range you want.
* Add or remove liquidity at will.
* Collect fees independently.
* Re-balance manually as the market moves.

The trade-off: you get full flexibility but the position is **not** automatically eligible for ALB farm rewards (those are paid on Bunni-wrapped Vaults), and you have to actively manage the range.

## When out-of-range happens

If price exits your range:

* Your position holds 100% of whichever asset is on the "wrong" side.
* You stop earning fees.
* You're effectively long the asset (or paid in the asset) at your range boundary.

To re-engage, either:

* Wait for price to come back into range, or
* Withdraw and re-deposit into a new range.

For Bunni Vaults, the protocol manages this at the Vault level: if a Vault drifts toward its boundary, a fresh Vault is launched. You can migrate when convenient — but no automatic migration happens. (That's exactly the gap [Mothership](/liquidity/mothership.md) is designed to fill, with active strategies that re-balance on your behalf.)

## Source code

* V3 core: forked from Uniswap V3.
* ERC-20 wrapping: forked from Bunni / Timeless Finance.
* Repos: [`alienbase-xyz`](https://github.com/alienbase-xyz/) (see Bunni-\* repos).

Audit lineage: see [Audits & Security — V3 / Bunni](/reference/audits-and-security.md).

## See also

* [Vaults overview](/liquidity/vaults.md)
* [Bunni explainer](/liquidity/bunni.md)
* [V2 Pools (legacy)](/liquidity/v2-pools.md)
* [Mothership](/liquidity/mothership.md)