> For the complete documentation index, see [llms.txt](https://9mm-pro.gitbook.io/9mm-pro/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://9mm-pro.gitbook.io/9mm-pro/overview/core-protocol-v2-and-v3-dex.md).
# Core Protocol v2 & v3 DEX
## Infinite Liquidity Range (v2)
* The v2 DEX employs the constant product formula (x × y = k), which balances liquidity provision through automated protocols.
* Liquidity providers contribute two assets in equal value to establish balanced pools, ensuring fair and efficient trading conditions.
* Trades on v2 incur a 0.17% fee, which is distributed to LPs and automatically compounded into the position. This compounding mechanism enhances returns over time.
* LP positions are represented by PLP tokens, which can be sent, traded or used in yield farming protocols for additional opportunities.
## Concentrated Liquidity (v3)
* The v3 DEX introduces concentrated liquidity, enabling LPs to allocate their capital to specific price ranges rather than the entire price curve. This increases capital efficiency and yields.
* The system supports multiple fee tiers (0.01%, 0.05%, 0.25%, 1%, and 2%), allowing LPs to tailor strategies to their specific needs and expected returns. Generated fees can be claimed at any time.
* Single-asset contributions effectively act as limit orders that become active within the selected price ranges, offering sophisticated liquidity strategies and risk management.
* This model reduces slippage and provides higher APYs for LPs by optimizing capital efficiency.
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