> For the complete documentation index, see [llms.txt](https://docs.sectorone.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sectorone.xyz/sectorone-dex/dlmm-pools.md). # | DLMM Pools
The **DLMM (Dynamic Liquidity Market Maker)** protocol feature allows to concentrate liquidity into single ***"bins"***, which leads to more efficient and flexible liquidity provisioning and seamless trading experiences with zero slippage and low fees. With DLMM, liquidity providers can provide liquidity within a specified price range in any amount of their choice - this is called ***"Concentrated Liquidity"***. Using a $USDC-$USDT pool as an example: \ *If an liquidity provider chooses to provide liquidity between $0.99 and $1.01 then the LP will earn trading fees as long as the price is within that active trading range.* When someone makes a token swap or trade, a transaction fee will be charged. For all SectorOne DLMM pools 80% of that earned trading fees goes back to the liquidity providers and 20% of that earned trading fees go to the $ONE token stakers. All earned fee rewards are automatically compounded back into the active bin where trading happens. When a user withdraws his LP, he also collects all accumulated trading fee earnings together with his provided liquidity. More informations on the DLMM fee distribution & LP earnings in the chapter ["DLMM Earnings"](/tokenomics/dex-economics/dlmm-earnings.md). ### Bins in DLMM Pools
#### Bins To allow concentrated liquidity, the price curve is discretized into ***"bins"***, which is similar to the *"tick"-concept* in Uniswap V3. The main difference however, is that DLMM protocols use the ***"Constant Sum"-price formula*** instead of the *"Constant Product"-price formula*. #### Bin Steps What this means is that each bin represents a single price point and the difference between two consecutive bins is the ***"bin step" parameter***. Take for example the $USDC-$USDT pool again*\**: \ *If the current price is $1 and the bin step setting is 1 basis point (i.e. 0.0001 or 0.01%), then the next consecutive bins up are 1 x 1.0001=$1.0001, 1.0001 x 1.0001=$1.00020001 etc.*\ *\*Note that this is the geometric sequence.* In addition to using a different price calculation, bin steps are not restricted to one basis point. \ The *"bins step" pool setting* is a non-adjustable parameter, which can only be set-up by the initial pool creator. **Because of this, there can be multiple DLMM pools of the same token pair, that differ only in their bin step and/or the base fee pool settings.** Check out the next chapter ["Dynamic Fees"](/sectorone-dex/dlmm-pools/dynamic-fees.md) for more informations on the *base fee setup* and the additional *dynamic fee system* for DLMM pools. {% hint style="danger" %} **Impermanent Loss**\ Keep in mind that providing liquidity could be subject to **impermanent loss** and it **may carry certain risks**. Make sure you are aware of all the pros and cons of providing liquidity into a concentrated liquidity pool before taking any actions. You can learn more about impermanent loss by clicking [here](https://academy.binance.com/en/articles/impermanent-loss-explained). {% endhint %} You can view the exact *bin step* setting for each pool under the *"Info"* tap on the pool detail page.