Concentrated Incentives (CI) on Saros

Earn real-time, on-chain rewards by actively managing your liquidity.

Concentrated Incentives (CI) is Saros' reward mechanism designed for Saros DLMM Pools. Unlike traditional yield farming or retroactive reward systems, CI enables you to earn rewards instantly and on-chain when your liquidity is within a specified reward zone.

This model blends the familiarity of AMM’s yield farming with the precision of concentrated liquidity, offering smarter, more active ways to earn.

What Are Concentrated Incentives?

Concentrated Incentives are real-time incentives distributed to Liquidity Providers (LPs) who actively position their liquidity inside the reward range — a zone around the current market price (called the active bin). As the price changes, the reward range moves with it, encouraging LPs to stay aligned with the market.

Key differences from traditional rewards programs:

• No waiting: Rewards are distributed continuously, without delay

• Fully onchain: Transparent, permissionless, and auditable

• Market-aligned: Designed to support liquidity depth at the current price

How Does CI Work?

Each Saros DLMM Pool has a reward range, defined as a number of bins (price intervals) around the active bin. This range usually spans between 1 and 11 bins, depending on the pool.

If you deploy liquidity within that range, you’ll receive a share of the pool’s rewards — proportional to how much liquidity you contribute within the reward zone.

Example:

• You provide 50% of the liquidity in the reward range → you receive 50% of the rewards

• You provide 20% of the liquidity → you receive 20% of the rewards

As the active bin shifts due to price movements, the reward range also shifts. This real-time rebalancing incentivizes LPs to stay close to the market price, improving efficiency and slippage for traders.

Why CI Matters

CI creates a dynamic incentive structure that rewards LPs not just for supplying capital, but for placing it where it matters most: around the price users are actually trading at.

This leads to:

• Better pricing

• More efficient swaps

• Deeper liquidity at active prices

• Better capital utilization for LPs

Key Benefits of Concentrated Incentives

1. Real-Time Rewards

No waiting for a weekly or monthly distribution — your liquidity starts earning instantly if it’s in range.

2. Adaptive to Price Movements

The reward zone follows the market, encouraging LPs to adjust and stay competitive.

3. Pool-Specific Configurations

Each Liquidity Pool can define its own reward range, allowing tailored incentives to suit different trading pairs or market conditions.

4. Improved Liquidity Depth

By encouraging liquidity at the current price, CI helps reduce slippage and create better trading experiences for users.

How to Start Earning with CI on Saros

Here’s how to get started in just a few steps:

Step 1: Find a Rewarded Pool

Head to the Pools section on Saros. Look for a Liquidity Book (LB) Pool that has a “Rewards” tag.

Step 2: Check Reward Info

On the pool page, you’ll see:

• The size of the reward range (number of bins)

• The estimated APR

• Total liquidity in the range Your potential share if you add liquidity

Step 3: Deploy Liquidity

You can deposit within the reward range or over a broader range that includes it. Your strategy depends on how actively you want to manage your liquidity.

For passive LPs, covering the range gives flexibility. For active LPs, focusing tightly on the reward bins may offer higher yields.

Step 4: Start Earning

Once your liquidity is deployed:

• You immediately begin earning proportional rewards

• The active reward bins will be highlighted in the "My Liquidity" section

• You can track what portion of your position is earning rewards in real time

Pro Tips for Maximizing CI

• Use tighter ranges if you're actively managing liquidity Adjust your positions when the market moves — the reward range moves with the price

• Monitor your bins in the dashboard and consider automating rebalancing with future tools or bots