pt2 – FOR LP PROVIDERS

1. Range problem

Problem:
In V3, your liquidity only works within a set range

You define:
• min price – the lower bound of the pair price
• max price – the upper bound of the pair price

As long as the price stays within the range → you earn fees

Once the price moves out of range:
• your liquidity stops participating in swaps
• your income = 0

Your earnings depend heavily on market movement

Solution:
In cubee.ee, liquidity isn’t tied to a single pair

• one pool can include up to 10 tokens
• liquidity is used across multiple pairs
• even if one pair is out of range, others continue to work

liquidity is utilized more frequently and more consistently

2. Liquidity leverage (via virtual balance)

Problem:
In traditional pools, your earnings are directly limited by the amount of liquidity you provide

Less liquidity:
• price moves more aggressively
• less volume goes through the pool
• lower fees earned

Solution:
cubee.ee uses virtual balance

This creates a leverage effect on your liquidity

Example:
you deposit $10 → but for pricing, the pool behaves as if there is more liquidity

What this gives you:
• smoother price movement
• more volume flowing through the pool
• higher fee generation

Simply put, you get the effect of more liquidity without increasing capital

Important:
the pool cannot use more funds than actually exist

3. Pair limitation

Problem:
In most DEXs:
1 pool = 2 tokens

At first glance, it seems simple – but this is also the limitation

This means:
• liquidity is tied to a single pair
• it cannot be used in other swaps
• a significant portion of liquidity sits idle

If there’s low activity in the pair → your earnings drop

Solution:
In multi-token pools:

• you can add up to 10 tokens(=45 pairs)
• liquidity is used more frequently
• more swap paths = more utilization

Based on testing in a mainnet environment, some pools have achieved 50%+ APY

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