Liquidity bins explained

Liquidity in Orbit Finance doesn’t sit in one giant undifferentiated pool like old-school AMMs. Instead, it is organised into liquidity bins, which you can think of as small buckets of capital tied to specific price levels.

Imagine a ladder of price points stretching from low to high. Each step on that ladder is a bin. When you provide liquidity, you choose which price bins you want your tokens to live in. If the market price is inside a bin you’ve supplied, your liquidity is active and earns fees when trades happen there. If the price moves out of your bins, your tokens simply wait until the price returns before they are used again.

This design gives you much more control over how your capital works. Rather than your liquidity being spread thin across every possible price, you can concentrate it where you expect trading activity to occur. That means you can earn more fees with the same amount of capital because your funds are placed closer to the action.

Another way to picture it is like setting up stands at a marketplace. Instead of scattering your goods across the whole market, you choose the stalls closest to the most foot traffic. When people trade in that price range, your liquidity is used first. When the marketplace moves to a different area, your stuff sits safely in its bins until it’s needed again.

Liquidity bins also make the price impact of trades more predictable. Because liquidity is divided into discrete steps, the price moves in a structured way as trades consume the liquidity in each bin. This is what makes Orbit Finance’s execution feel smoother and why slippage tends to be lower than in older AMM models.