# Concentrated AMM

A Uniswap V3-style Concentrated Liquidity AMM is the most efficient solution for semi-volatile FX pairs, allowing liquidity providers (LPs) to allocate liquidity within specific price ranges rather than spreading it across the entire curve.&#x20;

### **Why?**

* **Allows LPs to allocate liquidity within a price range**, making it **capital-efficient**.
* **Great for synthetic forex pairs and assets that experience some volatility.**

### **How It Works:**

* Instead of distributing liquidity across an entire curve, **LPs choose specific price ranges**, concentrating their liquidity where it's most needed.
* Ideal for **synthetic forex trading and pairs that experience moderate fluctuations**.

