Using the CHM

A user-guide on how to use the CHM (Concentrated Hybrid Model) and providing liquidity to our concentrated pools

The Concentrated Hybrid Model (CHM) lets you provide liquidity in a smarter way. Instead of spreading your funds across all possible prices, you choose the price range where your money works. This makes your liquidity more efficient, and you can earn more fees if trades happen inside your chosen range.

On MuesliSwap, these concentrated liquidity pools are connected directly to the orderbook. This means:

• Traders always get the best possible trade route.

• Liquidity providers (LPs) can focus their funds on the price ranges they believe in.

Now, let’s go step by step.

1. Finding Concentrated Pools

Go to MuesliSwap → Earn → Liquidity. Here you’ll see a list of available Concentrated Liquidity Pools.

Liquidity page with available pools

Each pool shows:

• Pair Name – the two tokens in the pool (e.g., SHEN/ADA).

• Liquidity Range – the price interval where the pool is active.

• Price – the current price in ADA.

• Liquidity Locked – how much total money is in the pool.

• Pool Fee – the fee charged on trades (shared among LPs).

🔑 Key difference: unlike normal pools, here your liquidity only works inside the price range shown.

2. Connect Your Wallet & View Your Position

1. Click Connect Wallet.

2. Once connected, you’ll see your own liquidity positions inside each pool.

SHEN/ADA pool showing user’s liquidity position.

This panel shows:

• How much ADA and SHEN you provided.

• What percentage of the pool you own.

• Pool details (fees, locked liquidity, matchmaker fee).

From here, you can Add Liquidity or Remove Liquidity.

3. Add Liquidity

1. Click the Add Liquidity button.

2. Choose how much ADA and SHEN (or another pair) to deposit.

The Add Liquidity form

Important notes:

• The correct ratio is calculated automatically based on the current price.

• You don’t need to worry about math — just enter how much you want to add.

• The interface shows the price range, your share of the pool, and the fee tier (for SHEN/ADA this is 0.3%).

1. Confirm your transaction.

   • Your deposit is batched on-chain (to reduce fees).

   • You’ll receive LP tokens as proof of your position.

   • After confirmation, your liquidity appears in your position list.

4. Remove Liquidity

1. Click the Remove Liquidity button.

2. Use the slider to pick how much you want to take out (e.g., 25%, 50%, 100%).

The Remove Liquidity widget.

1. The system shows the amount of ADA and SHEN you’ll get back.

   • Example: removing 39% of your position might return ~1.08 ADA + 0.9 SHEN.

2. Confirm the transaction, and the tokens return to your wallet.

⚠️ Note: If the market price moves outside your range, you might only get back one token (all ADA or all SHEN). This is normal.

5. Trade Using Concentrated Pools

1. Go to the Swap page.

2. Choose the tokens you want to trade (e.g., ADA → SHEN).

Swap form with ADA → SHEN trade.

The system will:

• Automatically pick the best route (it may include concentrated pools).

• Show you the amount you will get after fees.

• Let you confirm the trade on-chain.

If you enable Expert/Pro Mode, you can see the Buy/Sell orderbook.

Buy and Sell orders for SHEN/ADA

Some of these quotes come directly from the concentrated pools — this is how the CHM combines orderbook liquidity with pool liquidity.

6. Key Tips & Things to Remember

• You can open multiple liquidity positions with different ranges to cover a wider market.

• If the price moves outside your range, you stop earning fees until it moves back in.

• Every action (add, remove, trade) is a blockchain transaction and costs a small fee.

• Always check your liquidity page after connecting your wallet to see your active positions.