> ## Documentation Index > Fetch the complete documentation index at: https://docs.binibit.com/llms.txt > Use this file to discover all available pages before exploring further. # AMM Mechanics > Uniswap V3 fork with concentrated liquidity and a custom fee router on BiniChain. ## Foundation: Uniswap V3 BaiDEX is a **fork of Uniswap V3**, deployed on BiniChain. All standard V3 concepts apply: * **Concentrated liquidity** — LPs choose a price range; capital is more efficient when the price is in range * **Ticks** — discrete price levels, standard tick spacing * **Position NFTs** — each LP position is an ERC-721 NFT * **Range orders** — LPs can act as limit-order placers by tightly bracketing a tick range If you're familiar with Uniswap V3, BaiDEX feels identical for swap and LP UX. ## What's customized ### Custom fee router (`BaiDexFeeRouter`) Standard V3 sends 100% of swap fees to LPs. BaiDEX intercepts the fee via a router contract and splits it three ways: ``` 0.50% → LP providers 0.25% → burn address (permanent removal of swap-input asset) 0.25% → referrer (or treasury if no referrer) ``` The router is V3-compatible — swaps still go through `SwapRouter02` semantics, but the fee accounting is rewritten. See [Fees](/baidex/fees) for the full mechanism. ### Pool listing rules Standard V3 is permissionless — anyone can pool any pair. BaiDEX is **partly opinionated**: | Asset on the pool side | Listing rule | | ---------------------- | ---------------------------------------------------------------------------------------------------------------------------------- | | **wBINI** | DEX Liquidity (5% / 50M BINI allocation) seeds canonical pools. New wBINI-side pools use whatever wBINI is outside the anchor pool | | **USBI** | Permissionless on the USBI side — anyone with USBI can LP | | **Agent Token** | Auto-listed by the Spawner contract when an Agent Token is spawned; no manual creation needed | Result: there's a wBINI/USBI **anchor pool** (capped at \$12M TVL) and many smaller USBI/Agent-Token + wBINI/Agent-Token pools created either manually or by the Spawner. See [wBINI Cap Rule](/tokenomics/wbini-cap). ### Agent layer (per-pool) Every **Agent Token pool** has an Agent Worker assigned to it (from [Agent Hive](/agent-hive/overview)). The Worker: * Tracks pool depth and trade flow * Reacts to signals from Scouts and Queens * Can execute defined actions (e.g., cancel range order, adjust LP position) within boundaries set by Hive governance The Worker doesn't custody user funds — LPs and traders interact with the V3 contracts directly. The Worker layer is advisory + governance, with strict on-chain logging. ## Tick spacing Standard V3 tick spacing applies. The exact value (1, 10, 60, 200) per pool is set at pool creation and is implementation-defined per BaiDEX deploy. ## Concentrated liquidity in practice | LP scenario | Fees earned | Capital efficiency | | -------------------------------- | ------------------------------------------------- | --------------------------------------------- | | Full-range LP (like V2) | Earns 100% of in-range swap fees pro-rata | Low — a lot of capital sits inactive | | Tight range around current price | Earns much higher per-capital fees while in range | High — but goes "out of range" if price moves | | Lopsided range | Effectively a passive limit order | N/A until price reaches the range | LPs should choose ranges based on their conviction in price stability. BaiDEX UI provides standard V3 tooling. ## Routing BaiDEX exposes the V3 `SwapRouter02` interface. Off-chain routers (1inch, Paraswap) integrate via the standard V3 ABI. Direct quotes via the `Quoter` contract. ## SDK & Integrations The `@uniswap/v3-sdk` works against BaiDEX with a different chain config. Address book values for BiniChain pools are published in [Contract addresses](/baidex/contracts). ## Related The fee router in detail Pool types: wBINI / USBI / Agent Token Standard V3 protections Swap code example