As DeFi continues to mature across multiple blockchain ecosystems, users are moving beyond basic liquidity provisioning and seeking smarter ways to earn. iziswap, one of the leading multichain decentralized exchanges, introduces a powerful model called concentrated liquidity — giving liquidity providers more control, more capital efficiency, and potentially much higher rewards.
In this guide, we’ll walk you through how to use concentrated liquidity on iziswap, how to set smart price ranges, and how to boost your fee income while reducing risk.
What is Concentrated Liquidity on iziswap?
Concentrated liquidity is a model that allows LPs to allocate capital within a specific price range rather than across the full price spectrum. This means your funds are only active where trades are actually happening, so you earn more trading fees with less capital.
This system is similar to copyright v3, but iziswap enhances it with:
✔️ Dynamic range management tools
✔️ Farm boost integration
✔️ Real-time analytics for LP performance
✔️ Cross-chain deployment on Arbitrum, zkSync, Linea, and BNB Chain
???? According to Messari, concentrated liquidity increases fee income by 2–4x for active LPs compared to traditional AMMs.
Key Benefits of Concentrated Liquidity on iziswap
✔️ Maximize capital efficiency
✔️ Earn higher fees within active price ranges
✔️ Reduce impermanent loss (if managed well)
✔️ Customize risk/reward profile with your range settings
✔️ Combine with farming rewards for higher APY
Step-by-Step Guide: How to Provide Concentrated Liquidity on iziswap
Step 1: Connect Your Wallet
Go to iziswap
Click the "Connect Wallet" button.
Choose your preferred wallet (copyright, Trust Wallet, Rabby, WalletConnect).
Select your preferred blockchain (e.g., Arbitrum, zkSync).
???? Tip: Make sure your wallet has the required tokens and a small balance of the native chain token for gas fees.
Step 2: Choose Your Trading Pair
Navigate to the "Liquidity" tab.
Select the token pair you want to provide liquidity for — for example, USDC/ETH, iZi/USDT, or ETH/wBTC.
Look for:
- High-volume pools
- Pools with farming incentives
- Stablecoin or correlated assets for lower risk
???? Example: If ETH is trading around $3,000, you can choose the ETH/USDC pool.
Step 3: Set Your Price Range
Here’s where concentrated liquidity gets powerful:
Choose a price range where you want your funds to be active. The narrower your range:
- ✅ The higher the fee capture
- ❌ The greater the risk of being out of range
Range Types:
- Wide Range (Low Risk, Low Reward)
- Medium Range (Balanced)
- Narrow Range (High Reward, High Risk)
???? iziswap provides a visual interface to help you select and simulate performance.
???? Tip: Use tools like Revert Finance or Dune Analytics to study pool performance before committing.
Step 4: Add Liquidity
After selecting your range:
- Input the amount of both tokens you want to deposit
- Approve each token in your wallet
- Click "Add Liquidity" and confirm the transaction
Your position is now live and will earn fees only when the price is within your chosen range.
Step 5: Monitor & Adjust Your Position
Unlike traditional liquidity, your capital is inactive when price moves outside your range. This means you may want to:
- Rebalance your range periodically
- Withdraw and redeploy when price trends shift
- Use wider ranges during high volatility periods
Use iziswap’s built-in UI or external dashboards to:
- Track earnings
- Visualize performance
- Calculate impermanent loss
???? The Block notes that most advanced LPs who adjust ranges weekly earn 25–50% more in fees than passive providers.
Combining Liquidity Provision with iziswap Farming
iziswap also allows you to stake LP tokens into farming campaigns.
- Earn iZi tokens on top of swap fees
- Receive farming APR boost when iZi is staked
- Access dual-token rewards in selected pools
Example:
- Provide USDC/ETH liquidity within a 5% range
- Stake the LP tokens in a 60-day farm with a 40% APR
- Stake iZi tokens to receive a 1.5x farming multiplier
???? This combined strategy can yield 80–120% APR when executed well.
Try DeFiLlama or CoinGecko Yield to monitor top-performing iziswap farms.
Risk Management Tips for Concentrated Liquidity
✔️ Start with stablecoin or correlated pairs (e.g., USDT/USDC, ETH/wETH)
✔️ Use wide ranges if you're unsure about price direction
✔️ Always factor in gas costs and network fees
✔️ Monitor your position at least once per week
✔️ Track price volatility with tools like Coinglass or DefiLlama Volatility Index
???? Impermanent loss is real — but with smart range setting and farming rewards, you can still come out ahead.
Additional Features and Tools on iziswap
✔️ Range orders: turn liquidity into pseudo-limit orders
✔️ Real-time LP analytics in the UI
✔️ Multi-chain LP support (Arbitrum, zkSync, BNB Chain, Linea)
✔️ Governance: upcoming DAO will allow LPs to vote on emissions
iziswap is constantly rolling out new features — follow their Twitter and Telegram for updates.
Conclusion: Why Use iziswap for Concentrated Liquidity?
If you're looking to:
- Earn more fees with less capital
- Minimize idle liquidity
- Customize your risk profile
- Take advantage of iziswap farming and staking
...then concentrated liquidity is your best strategy — and iziswap gives you the tools to do it right.
Whether you're a seasoned yield farmer or just starting with LP, smart range setting on iziswap can help you maximize earnings, reduce risk, and grow your DeFi portfolio efficiently in 2025.
???? Start providing concentrated liquidity today at iziswap and unlock the next level of yield optimization.