Flash Fees

Liquidity providers can provide liquidity in a range between any two ticks.

Each range can be specified as a pair of signed integer tick indices: a lower tick and an upper tick.

It is technically possible to provide liquidity in as narrow a range as possible, which essentially means that the price of the asset can’t move without exhausting your liquidity and getting you 100% of the fees.

On a pair with high volume, this would allow you to earn fees in seconds.

For example:

Assuming the pair fees are 0.3%, If a user provides liquidity of $1m in this way, it is possible to earn $3000 of fees in just seconds. Note: When you exhaust your liquidity your asset gets converted 100% in one asset, this means that if you want to again provide the liquidity you have to swap your tokens essentially paying the swap fees and losing your gains. How we imagine this could work is by taking advantage of different swap tiers. For example, providing liquidity on 1% tier and swapping on 0.05% tier.