Provide Concentrated Liquidity with Native BCH
LP your Bitcoin Cash with a price range you pick and a fee tier you choose. Real BCH, real fees, no WBCH in between. A product category that did not exist for BCH until Rujira shipped.
Why this is new for BCH
Concentrated liquidity — LP positions with user-set price ranges and fee tiers — has been an EVM-native product for years. UTXO chains like Bitcoin Cash had no smart-contract surface to host it, and bridge-wrapped BCH never caught on. Rujira AMM runs on THORChain, which settles BCH natively, so concentrated LP with real Bitcoin Cash is finally possible.
- Real BCH as one side of the pair — not WBCH, not a bridge IOU, not a renBCH variant.
- User-chosen price ranges — concentrate capital where you expect the pair to trade.
- Multiple fee tiers — pick the tier that matches the pair's volatility and spread.
- Non-custodial — the protocol, not a company, holds your position against your address.
Step-by-step: open a concentrated LP position on BCH
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Open Rujira AMM
Navigate to the Rujira AMM app on THORChain. It supports concentrated liquidity positions on native BCH — no WBCH, no bridge, no wrapped derivative is involved at any step.
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Pick the BCH pair you want to LP
Choose the trading pair — BCH/RUNE, BCH/BTC, BCH/USDC, or any other pair Rujira lists for BCH. Depth and realised fees differ between pairs; check the 24h volume and fee tier before committing.
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Set your price range
Concentrated liquidity means your capital only earns fees while price trades inside a range you pick. A wide range behaves like a classic AMM (capital-inefficient but always earning); a narrow range earns much more when price sits in it, and zero when price leaves. Start wide until you know the pair.
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Pick a fee tier
Rujira AMM offers multiple fee tiers per pair. Lower tiers (e.g. 0.05%) fit tight-spread pairs; higher tiers (0.30%, 1%) fit volatile pairs. The UI shows which tier has the most volume — that is usually the right default.
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Deposit native BCH (and the paired asset)
Send BCH to the inbound address with the deposit memo. If the pair is BCH/USDC, the interface also asks for USDC on the paired chain. Your BCH stays native on the Bitcoin Cash chain; Rujira tracks your position on-chain against your address.
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Monitor the position and collect fees
Watch the position in the Rujira UI: current range, realised fees, and impermanent-loss exposure. Fees accrue continuously while price is in range; you can claim them without closing the position.
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Adjust or close when needed
If price drifts out of your range, you can rebalance (close, re-enter at a new range) or leave it and wait for price to return. Closing withdraws both tokens plus accumulated fees back to your wallets on their respective chains.
Risks to understand before you LP
Every LP position is exposed to IL when the pair price moves. Concentrated ranges can amplify this when price exits the range. Pick a width you can live with at the extremes.
When price leaves your range, the position earns no fees and sits entirely in one asset. You can wait for price to return, rebalance into a new range, or close.
Non-custodial does not mean risk-free. Rujira AMM runs on deployed contracts; a bug or exploit could affect LP balances. Size positions accordingly.
Other ways to put BCH to work
BCH concentrated-LP questions
What is concentrated liquidity, in one paragraph?
Classic AMMs (the original THORChain pool design, Uniswap v2) spread your LP capital across every possible price from zero to infinity. Most of that capital sits at prices the market never touches. Concentrated liquidity lets you concentrate your capital into a range you choose — e.g. 95¢–$1.05 on a stablecoin pair. Inside the range, your capital is denser, so you earn more fees per dollar of LP. Outside the range, you earn zero and your position drifts to one side of the pair.
Why is concentrated LP with BCH "new"?
Concentrated liquidity has historically been an EVM product — Uniswap v3, its forks, and a handful of L2 clones. UTXO chains like Bitcoin Cash had no smart-contract layer to host it. Rujira runs on THORChain, which settles BCH natively, so concentrated LP positions can be opened with real BCH as one leg of the pair for the first time.
What is impermanent loss, and does it apply here?
Yes. Any LP position on any AMM — concentrated or not — is subject to impermanent loss when the pair price moves. With concentrated ranges, IL is more concentrated too: a small price move that stays in your range has tight IL; a large move that exits the range leaves you holding the worse-performing side of the pair. Use size and range width you are comfortable with.
How are fees paid out?
Accrued trading fees sit in your position and can be claimed to your wallets without closing. Closing the position withdraws the current token balance plus any unclaimed fees. Rates vary with volume and range width — narrow ranges in high-volume pairs earn the most per unit of capital.
Is there impermanent-loss protection?
No automatic IL protection on Rujira AMM — it is a straightforward concentrated-liquidity design. If you want yield on BCH without IL exposure, the right product is borrowing stablecoins against BCH on Rujira Money Market (different risk profile: liquidation vs. IL).
How is this different from classic THORChain pools?
Classic THORChain pools are constant-product — they behave like Uniswap v2 and spread your LP across the whole price curve. Rujira AMM sits on top, adding user-set ranges and fee tiers. Both run on the same underlying native BCH; you pick the one that matches your preference for capital efficiency vs. set-and-forget passivity.