> For the complete documentation index, see [llms.txt](https://docs.warpgate.pro/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.warpgate.pro/product/warpgate-dex/liquidity-pools-on-warpgate.md).

# Liquidity Pools on WarpGate

<figure><img src="/files/ElVHLxFtqsMhh1veC7ma" alt=""><figcaption></figcaption></figure>

**Active Liquidity and Price Ranges**

Imagine providing liquidity only when the price aligns with your strategy. In V2, liquidity providers can precisely configure their positions to thrive within specific price ranges. Stray outside, and the position transforms into an inactive state—no trading, no fees. This level of precision empowers you to tailor your approach to align with market dynamics.

**Concentrated Liquidity**

Concentration is power. In V2, liquidity providers have the freedom to concentrate token deposits, focusing on specific price ranges. With V2's innovative approach, the same underlying assets now support more substantial trades, leading to higher relative liquidity. This concentration doesn't just amplify your impact; it opens doors to increased trading fees with the same capital.


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