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# Liquidity Book Pools

Our Liquidity Book feature allows us to concentrate liquidity into single bins, which leads to more efficient and flexible liquidity provisioning and seamless trading experiences with zero slippage and low fees.

With the Liquidity Book (LB), liquidity providers can provide liquidity within a specified price range of their choice - this is called

**concentrated liquidity**. Using the USDC/USDT pair as an example, if an LP chooses to provide liquidity between $0.99 and $1.01 then the LP will earn trading fees so long price is within that range.To allow concentrated liquidity, the price curve is discretized into

**bins**, which is similar to the tick concept in Uniswap V3. The main difference however, is that LB uses the**constant sum**price formula instead of the constant product formula.What this means is that each bin represents a single price point and the difference between two consecutive bins is the bin step.

Take for example USDC/USDT again. If the current price is $1 and the bin step is 1 basis point (i.e. 0.0001 or 0.01%), then the next consecutive bins up are:

In addition to using a different pricing invariant, bin steps are

**not**restricted to 1 basis point and is a parameter set by the pool creator. Because of this, there can be**multiple**markets of the same pair but varying only in their bin step.The Liquidity Book concept provides high flexibility about how users can provide their liquidity. If you are interested in learning more about it, check out the next chapter "Liquidity Strategies".

Last modified 8mo ago