> ## 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.
# Liquidity
> How LPs provide liquidity, USBI side scaling, and wBINI cap interaction.
Tokenomics → Ecosystem Overview shows where DEX liquidity fits into BINI / wBINI / USBI / CRS flows.
## Liquidity flows at a glance
```mermaid theme={null}
flowchart TB
subgraph Sources["Capital sources"]
BridgeA["Bridge A
CRS → USBI
10,000:1 · L5+"]
BridgeB["Bridge B
off-chain BINI → native
1:1 · L7+"]
CEX["Binibit / Azbit / Blynex
buy ERC-20 BINI
+ chain bridge"]
Wrap["Wrap BINI → wBINI
1:1 · BaiDEX UI"]
Spawn["AgentT Launchpad
Spawn Agent Token"]
end
USBIonchain["USBI (on-chain)"]
wBINI["wBINI (ERC-20)"]
AT["Agent Token (ERC-20)"]
subgraph Pools["BaiDEX V3 pools"]
Anchor["wBINI / USBI
(anchor · capped \$12M)"]
Growth["USBI / Agent Token
(growth pools)"]
Premium["wBINI / Agent Token
(premium pools)"]
end
subgraph AgentLayer["Agent Hive layer"]
Worker["Worker assigned
per Agent Pool"]
Scout["Scouts watch
cross-pool signals"]
Queen["Queens shape
strategy"]
end
BridgeA --> USBIonchain
BridgeB --> Wrap
CEX --> Wrap
Wrap --> wBINI
Spawn --> AT
USBIonchain --> Anchor
wBINI --> Anchor
USBIonchain --> Growth
AT --> Growth
wBINI --> Premium
AT --> Premium
Spawn -.- Worker
Worker -- monitors --> Growth
Worker -- monitors --> Premium
Scout -- signals --> Worker
Queen -- strategy --> Scout
classDef source fill:#fef9c3,stroke:#ca8a04,color:#713f12
classDef asset fill:#dcfce7,stroke:#16a34a,color:#14532d
classDef pool fill:#e0f2fe,stroke:#0284c7,color:#0c4a6e
classDef hive fill:#fce7f3,stroke:#db2777,color:#831843
class BridgeA,BridgeB,CEX,Wrap,Spawn source
class USBIonchain,wBINI,AT asset
class Anchor,Growth,Premium pool
class Worker,Scout,Queen hive
```
## Becoming an LP
Standard Uniswap V3 mechanics:
1. Acquire both pool sides (e.g., wBINI + USBI for the anchor pool, or USBI + Agent Token for a growth pool)
2. Choose a price range (concentrated liquidity)
3. Approve token spending to the V3 position manager
4. Mint a position NFT — the NFT represents your LP stake
5. Collect fees periodically via `collect()` on your position
6. Remove liquidity by calling `decrease()` and then `burn()`
The position NFT is transferable — you can sell, gift, or use it as collateral in future composable systems.
## Capital sources
### USBI side
USBI for LP comes from your **on-chain USBI balance**, which you got by [Bridge A](/bini-app/usbi-bridge) (CRS → USBI 10,000:1 at L5+).
Maximum USBI you can ever LP per account = your total entitlement = `1,000 + min(XP/10,000, 100,000)`.
Practical implication: a Level 30 user can LP up to \~101K USBI lifetime.
### wBINI side
wBINI for LP comes from **wrapping native BINI** on BiniChain.
To get native BINI:
* Bridge from Ethereum (ERC-20 → native via BiniChain bridge)
* Earn off-chain BINI in Bini App + use [Bridge B](/bini-app/bini-bridge) (1:1, L7+)
* Buy on Binibit Exchange / Azbit / Blynex and bridge
Once you have native BINI, wrap to wBINI via the wBINI contract or BaiDEX UI (1:1, no fee).
### Agent Token side
Agent Tokens come from:
* Spawning your own (AgentT Launchpad)
* Buying via swaps on BaiDEX
* Air-drops, sales, etc. (varies per project)
## Liquidity bootstrapping
When a new Agent Token is spawned, the **Spawner contract auto-creates an Agent Pool** (wBINI/AT or USBI/AT depending on config). It seeds the pool with:
* A small initial wBINI or USBI side from the spawn fee allocation, OR
* Zero initial liquidity (LPs must seed)
The exact bootstrapping policy is set per-launch by the team. Most Agent Tokens will need user-LPs to deposit to bootstrap meaningful trading.
For the anchor wBINI/USBI pool, the team seeded it at TGE using the DEX Liquidity allocation (50M BINI / 5%).
## In-range vs out-of-range liquidity
V3 LPs choose a price range. Earnings depend on whether the current price is in your range:
| State | LP earns? |
| ------------------------ | ------------------------------------------------------------- |
| Price is in your range | Yes — earns 0.50% LP fee on swaps that pass through your tick |
| Price moves out of range | No — your liquidity is "asleep" until price returns |
Tighter ranges = higher capital efficiency when in range, higher chance of going out. Wider ranges = lower efficiency but more reliable earnings.
## Impermanent loss
Standard concentrated-liquidity IL applies. For:
* **Stable pairs** (USBI/Agent Token where the AT trades sideways) — moderate IL
* **Volatile pairs** (wBINI/Agent Token, or USBI/AT during price discovery) — higher IL
LPs should size their position based on conviction and time horizon. There is no IL protection mechanism on BaiDEX.
## USBI side scaling
The USBI side of growth pools scales naturally with the user base because:
```
Total USBI in ecosystem ≈ N_users × avg_entitlement_per_user
≈ N_users × ~50,000 (mid-progression typical)
```
| Users | Estimated total USBI | Of which 10% in LP (typical) |
| -----: | -------------------: | ---------------------------: |
| 500 | 25M USBI | 2.5M USBI |
| 1,000 | 50M USBI | 5M USBI |
| 10,000 | 500M USBI | 50M USBI |
| 50,000 | 2.5B USBI | 250M USBI |
The 10% LP assumption is heuristic. Actual deposit rate depends on user behavior.
## wBINI cap interaction
The 50M wBINI cap (5% of BINI supply) constrains how much wBINI can be LP'd across all pools combined.
```
Anchor pool consumes: ~50M wBINI worth at cap ($6M)
Premium pools consume: remaining wBINI (any amount up to balance)
```
If users want to LP wBINI in a premium pool while the anchor is at cap, they need wBINI that wasn't sourced from DEX Liquidity allocation — i.e., wrapped from organic BINI buying or staking unlocks.
See [wBINI Cap Rule](/tokenomics/wbini-cap).
## Provider rewards (beyond fees)
LPs earn **just the 0.50% LP fee share** on swaps. There is no additional emission of BINI to LPs from the Rewards pool by default.
If a specific Agent Pool needs liquidity boostrap, the team may allocate emission to incentivize that pool — these are announced per case.
## Removing liquidity
Standard V3:
* Decrease position to receive both sides back proportional to current price
* Burn position NFT after fully decreasing
* Pay BiniChain gas in BINI for the transaction
## Cross-product flow summary
| Step | Where | Page |
| ------------------------ | -------------------- | ---------------------------------------- |
| Earn CRS | Bini App | [Claim & mining](/bini-app/claim-mining) |
| Spend CRS → XP | Tokenomics | [XP formula](/tokenomics/xp-formula) |
| XP → USBI entitlement | Tokenomics | [USBI formula](/tokenomics/usbi-formula) |
| Bridge CRS → USBI | Bini App / BiniChain | [Bridge A](/bini-app/usbi-bridge) |
| Bridge BINI off → native | Bini App / BiniChain | [Bridge B](/bini-app/bini-bridge) |
| Wrap native → wBINI | BaiDEX | wrap on BaiDEX UI |
| Provide LP | BaiDEX | this page |
| Worker manages pool | Agent Hive | [Workers](/agent-hive/workers) |
| Scout / Queen oversight | Agent Hive | [Hierarchy](/agent-hive/hierarchy) |
## Related
The three pool types
Why the cap shapes pool liquidity
Where USBI comes from
Where native BINI for wrapping comes from
Workers managing your pool
How spawn fees and trade burns affect liquidity