The Liquidity Shape
In Bean DLMM, liquidity is distributed across discrete price bins, and LPs can choose different liquidity shapes to define how their capital is allocated across those bins. Each shape represents a different strategy to manage trade-offs between capital efficiency, fee capture, and price exposure.
Liquidity shapes allow LPs to:
Concentrate capital around the current market price for maximum efficiency
Spread liquidity across wider price bands for passive exposure
Strategically position liquidity to automate buy-low/sell-high logic
Bean currently supports three core liquidity shapes:
Spot
Curve
Bid-Ask
Below is a detailed explanation of how each shape works, followed by a comparison table to help you decide.
1. Spot Shape
The Spot shape distributes liquidity evenly across a defined price range (e.g., ±5% around the current market price). This creates a flat distribution where each bin receives the same amount of liquidity.
This is similar to CLMM ranges in traditional DEXs but divided discretely by bins. Each bin holds a balanced share of the LP's total allocation, allowing the price to drift within the band while still enabling trades.
How it works
LPs specify a range (e.g., ±5% from current price)
Liquidity is split equally among bins within this range
Each bin can support two-way swaps as long as it has reserves
Visual Example
2. Curve Shape
The Curve shape concentrates most of the liquidity near the center (usually the current price), then gradually decreases it toward the edges. This creates a smooth, bell-curve-like distribution, ideal for price action hovering around a mean value.
This strategy is optimal when trading volume clusters near a central price level and aims to maximize capital efficiency while still allowing modest drift.
How it works
Most bins near the current price receive a higher allocation
Outer bins receive less, forming a Gaussian-like curve
Useful for mean-reverting or sideways markets
Visual Example
3. Bid-Ask Shape
The Bid-Ask shape places liquidity at two peaks on either side of the current price, leaving little or no liquidity in the center. This design simulates a traditional order book's bid-ask spread.
The strategy is great for capturing swings in both directions. LPs can accumulate tokens when the price dips and offload when it pumps, passively executing a buy-low/sell-high routine.
How it works
Liquidity is allocated to two zones: one below and one above current price
Mid-price bins are left empty or sparsely populated
Useful for highly volatile or mean-reverting assets
Visual Example
Liquidity Shape Comparison
Spot
Stablecoin pairs, passive LPs, wide price windows
High uptime, transparent IL, minimal upkeep
Less capital efficiency, lower APR in volatile markets
Low
Low
Curve
Sideways/range-bound pairs, large caps
Capital efficient, high fee capture near current price
Requires rebalancing if price trends too far
Medium
Medium
Bid-Ask
Volatile or mean-reverting markets, memecoins, passive DCA
Captures fees from large swings, auto buy/sell cycles
Higher IL risk, inactive at mid-range
High
High
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