# Concentrated Hybrid Model (CHM) In addition, to the standard AMM pools you can also find concentrated pools that we introduced as the CHM. Our detailed report on this model and it's inner workings can be found here: **Quick summary. What is the CHM?** The concentrated hybrid model is a new DEX paradigm introduced on Cardano that combines an orderbook with concentrated liquidity pools. (CLPs). Concentrated liquidity pools let liquidity providers (LPs) choose the exact price range where their funds are active, rather than spreading liquidity across all prices. This makes capital more efficient: the same funds can earn more fees if prices trade inside the chosen range. On MuesliSwap, concentrated pools run on Cardano’s eUTXO model and connect directly to the on-chain orderbook. Each pool is tied to a token pair and a fixed price range. Many pools can exist for one pair, each covering different ranges. When users trade, the system can route across multiple pools that overlap the current price to get a better fill. What does this mean for traders? * You swap tokens against pools covering the current price. * Orders can be matched across several pools to improve execution. * Partial fills are supported; you always receive what the transaction proves on-chain. What this means for LPs * Provide liquidity only where you expect trading to happen (your chosen price range). * Earn a higher share of fees if the market stays inside your range. * You can open several positions (pools) with different ranges to cover wider prices. How it works at a high level * Pools: Each pool is one UTxO with a pool NFT and a fixed price range. * Deposits/Withdrawals: LP tokens (“LP coins”') represent your share of the pool. Deposits and withdrawals are batched on-chain to save fees. * Swaps: Swaps respect the concentrated constant-product rules for the pool’s range. Fees remain in the pool, increasing its value for LPs. When to use concentrated pools * If you have a price view and want to focus your liquidity for more fee income. * If you want fine control (multiple ranges, different widths) instead of a single “all-prices” AMM. Notes * If price moves outside your range, your position may stop earning fees until you adjust the range * All actions (orders, deposits, withdrawals, swaps) are validated on-chain; transaction costs apply. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.muesliswap.com/cardano/concentrated-hybrid-model-chm.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.