> ## Documentation Index
> Fetch the complete documentation index at: https://docs.kuru.io/llms.txt
> Use this file to discover all available pages before exploring further.

> Understand the different liquidity distribution shapes and when to use each

# Liquidity Shapes Explained

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

## 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

## The Three Shapes

### 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.

***

### 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.

***

### 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.

***

## How We Auto-Recommend

We automatically recommend the best shape based on market characteristics:

<CardGroup cols={3}>
  <Card title="Stable Markets" icon="minus">
    Choose **Curve**
  </Card>

  <Card title="Most Markets" icon="chart-line">
    Choose **Spot**
  </Card>

  <Card title="Volatile Markets" icon="chart-candlestick">
    Choose **BidAsk**
  </Card>
</CardGroup>

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

## 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

<Tip>
  Remember, there's no "best" shape for all situations - it depends on the market and your strategy.
</Tip>

***

<CardGroup cols={2}>
  <Card title="Quick Start Guide" icon="rocket" href="/liquidity/quick-start-guide">
    Ready to add liquidity?
  </Card>

  <Card title="How Fees Work" icon="percent" href="/liquidity/how-fees-work">
    Learn about fee tiers
  </Card>
</CardGroup>