> For the complete documentation index, see [llms.txt](https://docs.muesliswap.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.muesliswap.com/cardano/concentrated-hybrid-model-chm/using-the-chm.md).

# Using the CHM

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**.

<figure><img src="/files/PVXApAiuWW1g2haGJdgJ" alt="Liquidity page with available pools"><figcaption><p>Liquidity page with available pools</p></figcaption></figure>

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.

<figure><img src="/files/KIhIcKAipB3rMfjfz8Na" alt=""><figcaption><p><em>SHEN/ADA pool showing user’s liquidity position.</em></p></figcaption></figure>

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.

<figure><img src="/files/piTRMwt0Qyvf0WKAWANE" alt=""><figcaption><p>T<em>he Add Liquidity form</em></p></figcaption></figure>

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%).

3. 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%).

<figure><img src="/files/dsvgDIbGRQYcUnmaYkA6" alt=""><figcaption><p>T<em>he Remove Liquidity widget.</em></p></figcaption></figure>

3. 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.
4. 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).

<figure><img src="/files/ruB0ni96tIrXsosBiSYy" alt="" width="375"><figcaption><p><em>Swap form with ADA → SHEN trade.</em></p></figcaption></figure>

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**.

<figure><img src="/files/1MRekJFqGgO9nLwtaYTM" alt=""><figcaption><p><em>Buy and Sell orders for SHEN/ADA</em></p></figcaption></figure>

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.


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## 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, and the optional `goal` query parameter:

```
GET https://docs.muesliswap.com/cardano/concentrated-hybrid-model-chm/using-the-chm.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

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.