CURVE Distribution

Concentrate liquidity using a Gaussian (bell curve) distribution around the current price. Balances capital efficiency with range coverage. Visit the Shapes and Strategy section for more details.

Quick Implementation

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

// Create CURVE distribution
const curveParams = DistributionUtils.createParams(
  DistributionUtils.CURVE,
  {
    activeId: pair.parameters.active_id,
    binRange: [activeId - 20, activeId + 20],
    parsedAmounts: [
      new Decimal(1000),  // token X
      new Decimal(1000)   // token Y
    ],
    alpha: 0.1  // Concentration factor (0-1)
  }
);

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

Alpha Parameter

Controls concentration level:

• 0.1: High concentration (narrow peak)

• 0.5: Moderate concentration

• 0.9: Low concentration (approaches uniform)

// Tight concentration for stable pairs
alpha: 0.1  // 90% liquidity in ±5 bins

// Balanced for volatile pairs
alpha: 0.5  // Wider distribution

Manual Implementation

// Simple approximation of Gaussian
const radius = 10;
const center = 0;

const deltaIds = Array.from({length: 21}, (_, i) => i - radius);
const distribution = deltaIds.map(id => {
  // Higher values near center
  const distance = Math.abs(id - center);
  return Math.exp(-(distance ** 2) / (2 * 4)); // sigma = 2
});

// Normalize to 100
const sum = distribution.reduce((a, b) => a + b);
const normalized = distribution.map(v => (v / sum) * 100);

Best Use Cases

✅ Ideal for:

• ETH/USDC (major pairs)

• Most trading strategies

• Fee optimization

• Active markets

❌ Less suitable for:

• Extreme volatility

• Wide range needs

• Passive strategies

Choosing Alpha

Asset Type	Recommended Alpha	Description
Blue-chip	0.1-0.3	Tight concentration
Standard	0.3-0.5	Balanced approach
Volatile	0.5-0.7	Wider coverage

Key Benefits

• Higher fee capture near price

• Maintains some range coverage

• Efficient capital usage

• Natural rebalancing incentive

Related Topics

• SPOT Distribution - Uniform alternative

• BID-ASK Distribution - Market making

• Bin Selection - Optimize placement