Overview

To achieve concentrated liquidity, the continuous spectrum of price space has been partitioned with price bins. Price bins are the boundaries between discrete areas in price space.

What Are Bins?

A bin is a container that holds liquidity at a specific price point within a pool. Think of it like a bucket sitting at one spot on a price ladder.

What can a bin hold?

• One token only
• Both tokens (only the active bin can hold both)
• Empty (no tokens at all)

How swaps work with bins:

1. Swaps happen inside the active bin, exchanging one token for the other
2. Once all of one token is converted, the price moves to the next bin
3. Key benefit: Swaps within a single bin have zero slippage — making the pool more attractive to traders.

Zero Slippage Within Bins

While each bin has the same price point, in practice only a portion of available liquidity may be consumed during a swap. Due to the discrete nature of bins, swaps that occur entirely within a single bin experience zero slippage - the trade executes at the bin's exact price.

What are Bin Steps?

A bin step is simply the difference in price between 2 consecutive bins. The bin step for any given pool is determined by basis points. Think of it like steps on a staircase — each step takes you to a slightly different price level.

How it works:

• Bin steps are measured in basis points (1 basis point = 0.01%)