In-Range Farming

Pangolin V3 introduces a powerful new mechanism called In-Range Farming, designed to enhance yield opportunities for liquidity providers. This system rewards LPs who maintain their liquidity positions within specific target price ranges. The tighter and more concentrated the liquidity around the target price, and the longer it remains within that range, the greater the potential rewards.

This approach ensures that the most useful liquidity—liquidity positioned where trading is actively happening—is incentivized. If a position moves out of range due to price shifts, reward accrual is paused until the position returns to the incentivized zone. This encourages LPs to monitor and manage their positions more actively, creating a more efficient and responsive liquidity environment on Pangolin V3.