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When you add liquidity on Kuru, you can choose how your tokens are distributed across your price range. This is called the liquidity shape.

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Why Shape Matters

Different shapes work better for different types of markets. The right shape helps you:
  • Earn more fees in the right market conditions
  • Use your capital more efficiently
  • Match your strategy to market volatility

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The Three Shapes

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Curve - Concentrated Liquidity

What it is: Most of your liquidity is concentrated near the current mid price. When to use it: Stable asset pairs where price rarely moves far from the center
  • Stablecoin pairs (USDC/USDT)
  • Liquid staking tokens vs native (stETH/ETH)
Why it works: Since price stays near the mid point, you earn maximum fees by concentrating your liquidity there. Trade-off: Most capital efficient for stable pairs, but if price moves significantly, you’ll quickly move to 100% one asset.

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Spot - Uniform Distribution

What it is: Your liquidity is spread evenly across every price point in your range. When to use it: Most markets - this is our default recommendation for general-purpose LPing. Why it works: Balanced approach that handles moderate price movement well. You earn fees consistently across the entire range. Trade-off: Less concentrated than Curve, so slightly less efficient in stable markets, but much safer when price moves.

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BidAsk - Edge-Weighted

What it is: Less liquidity in the middle of your range, with more liquidity concentrated toward the edges. When to use it: Volatile markets where you expect larger price swings. Why it works: Protects you from having too much liquidity caught at mid-range prices during trending moves. Trade-off: You earn less fees when price is stable and hovering in the middle, but you’re better positioned for volatile, trending markets.

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How We Auto-Recommend

We automatically recommend the best shape based on market characteristics:

Stable Markets

Choose Curve

Most Markets

Choose Spot

Volatile Markets

Choose BidAsk
For most users, our recommendation works well and you don’t need to change it.

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When to Override the Recommendation

You might want to choose a different shape if:
  • You have a specific view on how the market will move
  • You’re comfortable with the trade-offs of each shape
  • You want to experiment with different strategies
Remember, there’s no “best” shape for all situations - it depends on the market and your strategy.

Quick Start Guide

Ready to add liquidity?

How Fees Work

Learn about fee tiers