BubbleSwap is a CONCENTRATED LIQUIDITY PROTOCOL.Being a concentrated liquidity protocol,LPs can choose the price range to provide liquidity thereby increasing the profit accrued from liquidity providing.

Сoncentrated liquidity is the liquidity allocated within a custom price range.

When liquidity was distributed evenly, one could trade their assets within the infinite interval (0,∞). With the concentrated liquidity mechanics, liquidity providers (LPs) can accumulate their capital to smaller price intervals than (0, ∞) which enables individualized price curves, higher capital efficiency and deeper liquidity for traders.

When the price enters a certain range, the liquidity aggregated for that range starts collecting trading fees, with each LP receiving their slice of the fee pie, proportionally to their contribution to the total liquidity inside of that price range alone.

As the price moves up and down, liquidity from different LPs is used to execute the swaps. Consequently, users are making trades against the aggregated liquidity from all liquidity positions covering the current price, and there is no difference for those whose liquidity their swaps are utilizing.

There are a number of benefits and advantages that the new model of pooling liquidity offers both LPs and traders. Now, LPs can allocate their capital to the preferred price intervals, consolidating their funds to earn more fees and using liquidity more efficiently. At the same time, traders enjoy deeper liquidity when and where it’s needed most, as well as profiting greatly from reduced slippage.

Since LPs can decide the price range to provide liquidity rather than equally distributing across the entire price curve,they can optimize profit by choosing multiple fee tiers.

Therefore BubbleSwap offers better profits and lower impermanent loss for traders compared to other traditional AMMs.