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What is Liquidity Provisioning?

When you provide liquidity on Kuru, you’re making it easier for traders to buy and sell assets. In return, you earn fees from their trades. Think of it like being a market maker - you’re offering to buy and sell at specific prices, and you profit from the difference.

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Flip Orders: The Magic Behind Your LP Position

On Kuru, your liquidity position is powered by flip orders - a special type of order that automatically manages your liquidity on the order book. Here’s the simple version: When you add liquidity, we place multiple buy and sell orders across your chosen price range. When a buy order fills, it automatically “flips” into a sell order. When that sell order fills, it flips back into a buy order. This cycle continues automatically.
Simple example:
  • Current MON price: $0.025
  • You set a range: $0.020 - $0.030
  • Kuru places 25 buy orders and 25 sell orders spread across this range
  • As orders fill, they automatically flip to the opposite side
  • You earn the spread on every fill
The key benefit?
Your liquidity stays active on the book without you needing to constantly cancel and replace orders. It works like concentrated liquidity on AMMs (like Uniswap v3), but directly on the order book.

Learn more about flip orders

Deep dive into how flip orders work under the hood

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How You Earn Fees

Every time a trader matches against one of your orders, you earn a fee (the spread between your buy and sell prices). The best part?
These fees automatically get added back into your position. You don’t need to claim or withdraw them separately - they compound automatically, growing your position over time.

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When Your Position is Active

Your liquidity only earns fees when the market price is within your chosen range.

Price Inside Range

Your orders are active and earning fees

Price Outside Range

Orders aren’t active, not earning fees
If price moves outside your range, your position becomes inactive. You can always adjust your range or create a new position.

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What Happens as Price Moves

As traders match against your orders and they flip back and forth, the composition of your position changes:
  • Price goes up → You’re selling MON, collecting USDC
  • Price goes down → You’re buying MON, spending USDC
This is normal and expected! You’re continuously providing liquidity at different price points.

Understanding Risks & Impermanent Loss

Learn about the risks of providing liquidity

Quick Start Guide

Ready to add liquidity? Follow our 2-step guide