Provide Concentrated Liquidity with Native BTC
LP your Bitcoin with a price range you pick and a fee tier you choose. Real BTC, real fees, no WBTC leg in the pair. A product category that did not exist for native Bitcoin until Rujira shipped.
Why concentrated LP with BTC is new
Concentrated liquidity — LP positions with user-set price ranges and fee tiers — has been an EVM-native product for years. UTXO chains like Bitcoin had no smart-contract surface to host it, and WBTC LPs always carried the wrapper step. Rujira AMM runs on THORChain, which settles BTC natively, so concentrated LP with real Bitcoin is finally possible.
- Real BTC as one side of the pair — not WBTC, not a bridge IOU.
- User-chosen price ranges — concentrate capital where you expect the pair to trade.
- Multiple fee tiers — match the tier to 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 BTC
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Open Rujira AMM
Navigate to the Rujira AMM app on THORChain. It supports concentrated-liquidity positions with native BTC as one side of the pair — no WBTC, no bridge, no wrapped derivative is involved.
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Pick the BTC pair
Choose the trading pair — BTC/RUNE, BTC/USDC, BTC/ETH, or any other pair Rujira lists for BTC. Depth and realised fees differ by pair; check 24h volume and the fee tier before committing.
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Set your price range
Concentrated liquidity means your capital earns fees only while the pair trades inside the 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 nothing 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. Low 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 — usually the right default.
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Deposit native BTC (and the paired asset)
Send BTC to the inbound address with the deposit memo. If the pair is BTC/USDC, the interface also collects USDC on the paired chain. Your BTC stays native on the Bitcoin chain; Rujira tracks your position on-chain against your address.
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Monitor the position and collect fees
Watch the position: 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, rebalance (close and 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 IL 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 BTC to work
BTC 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 focus your capital into a range you choose — e.g. $60k–$80k on BTC/USDC. Inside the range your capital is denser, so you earn more fees per dollar of LP. Outside the range you earn zero and the position drifts to one side of the pair.
Why is concentrated LP with native BTC "new"?
Concentrated liquidity has historically been an EVM product — Uniswap v3, its forks, and a handful of L2 clones. UTXO chains like Bitcoin had no smart-contract layer to host it, and bridged BTC wrappers carry their own risk budget. Rujira runs on THORChain, which settles BTC natively, so concentrated LP positions can be opened with real Bitcoin as a first-class leg.
What is impermanent loss, and does it apply here?
Yes. Any LP position on any AMM — concentrated or not — carries impermanent loss when the pair price moves. With concentrated ranges IL is more concentrated too: small moves inside a tight range produce tight IL; large moves that exit the range leave the position holding the worse-performing side of the pair. Size and range width should match the volatility you can live 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 IL protection?
No automatic IL protection on Rujira AMM — it is a straightforward concentrated-liquidity design. If you want BTC-native yield without IL exposure, the right product is borrowing stablecoins against BTC 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 spread your LP across the whole price curve. Rujira AMM sits on top and adds user-set ranges and fee tiers. Both operate on the same underlying native BTC; pick based on preference for capital efficiency vs. set-and-forget passivity.