Understanding Concentrated Liquidity

H3RMES integrates concentrated liquidity pools with our SwapX, improving capital efficiency by allowing liquidity providers to:

• Focus liquidity in specific price ranges, earning higher fees per dollar provided.

• Benefit from auto-rebalancing mechanisms (moderated by Bentobox V2) to optimise their LP positions.

H3RMES currently utilises both full-range V3 liquidity pools as well as single-sided liquidity pools to give users a wide range of available deposit options. In the future, BentoBox V2 will simplify concentrated liquidity provision by automating the LP range selection, making it easy for users to participate and generate the highest yield possible without manual adjustments that might be too difficult for the average user.

Using H3RMES, users can simply write the amount of $S they want to be deposited to their chosen yield pool, click 'deposit', and the H3RMES contracts will automatically take care of the rest.