> For the complete documentation index, see [llms.txt](https://docs.ferra.ag/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ferra.ag/integration/dlmm/typescript-sdk/add-liquidity/bid-ask-distribution.md).

# BID-ASK Distribution

Create weighted liquidity that increases farther from the current price. Ideal for market making and volatility harvesting strategies. Visit the [Shapes and Strategy](/core-protocols/quickstart/shapes-and-strategies.md) section for more details.

### Quick Implementation

```typescript
import { DistributionUtils } from '@ferra-labs/dlmm';

// Create BID-ASK distribution
const bidAskParams = DistributionUtils.createParams(
  DistributionUtils.BID_ASK,
  {
    activeId: pair.parameters.active_id,
    binRange: [activeId - 15, activeId + 15],
    parsedAmounts: [
      new Decimal(1000),  // token X
      new Decimal(1000)   // token Y
    ]
  }
);

// Add liquidity
const tx = await sdk.Pair.openPositionAndAddLiquidity(pair, {
  amountX: 1000000000n,
  amountY: 1000000000n,
  ...bidAskParams
});
```

### How It Works

Liquidity weight increases with distance from active bin:

* Bin ±1: Weight = 2
* Bin ±2: Weight = 3
* Bin ±3: Weight = 4
* And so on...

```typescript
// Manual implementation
const range = 10;
const deltaIds = Array.from({length: range * 2 + 1}, (_, i) => i - range);

const distribution = deltaIds.map(id => {
  const weight = Math.abs(id) + 1;
  return id === 0 ? weight / 2 : weight;  // Half weight at active
});

// Normalize to 100
const normalized = distribution.map(v => (v / sum) * 100);
```

### Best Use Cases

✅ **Ideal for:**

* Market making strategies
* Mean reversion trading
* Volatility harvesting
* Large price swings

❌ **Not suitable for:**

* Stable pairs
* Trending markets
* Passive strategies

### Strategy Benefits

#### Volatility Capture

* Profits from price swings
* Better fills at extremes
* Natural buy low/sell high

#### Risk Management

* Less IL at current price
* Protected from small moves
* Captures large deviations

### Configuration Tips

* **Volatile pairs**: 20-30 bin range
* **Standard pairs**: 15-20 bin range
* **Adjust range**: Based on historical volatility

### Example Scenarios

```typescript
// High volatility pair
const volatileParams = {
  binRange: [activeId - 25, activeId + 25],  // Wide range
  // More capital for larger swings
};

// Moderate volatility
const standardParams = {
  binRange: [activeId - 15, activeId + 15],  // Standard range
  // Balanced approach
};
```

### Key Advantages

* Captures volatility premium
* Reduces impermanent loss risk
* Better pricing at extremes
* Automated mean reversion

### Related Topics

* [SPOT Distribution](/integration/dlmm/typescript-sdk/add-liquidity/spot-distribution.md) - Uniform approach
* [CURVE Distribution](/integration/dlmm/typescript-sdk/add-liquidity/curve-distribution.md) - Concentrated liquidity
* [Liquidity Strategies](broken://pages/QDLzlzw07vfHJEB6TvIY) - Advanced tactics