> ## 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.

# Single-Sided vs Balanced Liquidity

> Learn when to use balanced or single-sided liquidity strategies

When you add liquidity on Kuru, you can choose how to split your position between buy orders (bids) and sell orders (asks). This is controlled by the **bid/ask ratio slider**.

## Balanced Liquidity (Default)

**What it is:** A roughly 50/50 split between bids and asks.

**What you deposit:** Both MON and USDC

**How it works:**

* You have buy orders below the current price (to buy MON)
* You have sell orders above the current price (to sell MON)
* You earn fees as price moves up AND down

**When to use it:**

* You want to earn fees regardless of which direction price moves
* The market is ranging or oscillating
* You don't have a strong directional view on price
* **This is the lower-risk approach**

**Example scenario:**\
"I think MON will range between $0.020 - $0.030 for the next month" → Use balanced liquidity to earn on both sides

***

## Single-Sided Liquidity

**What it is:** All of your orders are on one side - either all bids (USDC only) or all asks (MON only).

### All Bids (USDC Only) - Bullish Strategy

**What you deposit:** Only USDC

**How it works:**

* All your orders are buy orders below the current price
* As price drops, your orders fill and you accumulate MON
* You earn fees as you buy MON at progressively lower prices

**When to use it:**

* You're bullish on MON and want to accumulate it
* You believe price will drop and you want to buy cheaper
* You want to convert your USDC into MON while earning fees

<Warning>
  **Important:** If your bids all get filled (you're now 100% MON) and price moves back up, you won't earn any more fees unless you withdraw and create a new position. If price continues down and then reverses, you'll be selling that MON back into USDC, leaving you with the same asset you started with.
</Warning>

***

### All Asks (MON Only) - Bearish Strategy

**What you deposit:** Only MON

**How it works:**

* All your orders are sell orders above the current price
* As price rises, your orders fill and you convert MON to USDC
* You earn fees as you sell MON at progressively higher prices

**When to use it:**

* You want to sell your MON position
* You believe price will rise and you want to exit at better prices
* You want to convert MON into USDC while earning fees

<Warning>
  **Important:** If your asks all get filled (you're now 100% USDC) and price moves back down, you won't earn any more fees unless you withdraw and create a new position. If price continues up and then reverses, you'll be buying that MON back, leaving you with the same asset you started with.
</Warning>

***

## Using the Slider

The bid/ask ratio slider makes it easy to adjust your strategy:

* **Slide right** → More bids (requires more USDC, less MON)
* **Slide left** → More asks (requires more MON, less USDC)
* **Keep in middle** → Balanced (requires both MON and USDC)
* **All the way to one side** → Fully single-sided

As you move the slider, you'll see the required deposit amounts update in real-time.

***

## Which Should You Choose?

<CardGroup cols={3}>
  <Card title="Balanced" icon="scale-balanced">
    No strong price view, want to earn fees both directions
  </Card>

  <Card title="All Bids" icon="arrow-down">
    Bullish on MON, want to accumulate on dips
  </Card>

  <Card title="All Asks" icon="arrow-up">
    Want to sell MON, convert to USDC on rises
  </Card>
</CardGroup>

<Tip>
  **For beginners:** Start with balanced liquidity. It's more forgiving and earns fees regardless of price direction.
</Tip>

***

<CardGroup cols={2}>
  <Card title="Understanding Risks & Impermanent Loss" icon="triangle-exclamation" href="/liquidity/risks-impermanent-loss">
    Learn about the risks
  </Card>

  <Card title="How Fees Work on Kuru" icon="percent" href="/liquidity/how-fees-work">
    Understand fee earnings
  </Card>
</CardGroup>
