> For the complete documentation index, see [llms.txt](https://docs.lif3.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lif3.com/liquidity/v3.md).

# V3

Introducing features as:

**Concentrated liquidity**, this allows LPs to concentrate their liquidity into specific price ranges, which can significantly increase their returns.\
Individual positions are aggregated together into a single pool, forming one combined curve for users to trade against

**Multiple fee tiers**, allowing LPs to choose the level of risk they are comfortable with and be compensated accordingly. 

Overall, Swap v3 is a significant improvement over our previous versions of the swap. It is more capital efficient, and provides better execution for traders.

*LPs can significantly increase their exposure to preferred assets and reduce their downside risk.*

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