What Is a “Non-Fungible Liquidity Position” and Why Is It Used in CLPs?
In concentrated liquidity pools, an LP's position is represented by a Non-Fungible Token (NFT). This is because each position is unique, defined by its specific, user-selected price range and the amount of capital deposited.
Unlike standard AMM tokens, which are fungible, the NFT accurately tracks the distinct parameters and accrued fees of the individual position.
