defi primitiveAlso known as: LP NFT, Position NFT, NonfungiblePositionManager Token
Liquidity Position (LP NFT)
An LP Position in concentrated liquidity is a non-fungible ERC-721 token representing unique ownership of token balances, tick bounds, and uncollected fees.
1. Definition & Primary Objective
Because each concentrated liquidity position has custom price boundaries [tickLower, tickUpper], positions are non-fungible. They are minted as ERC-721 NFTs by the protocol’s NonfungiblePositionManager contract, recording position liquidity, fee growth checkpoints, and ownership.
Primary Objective
Provide cryptographic, transferable proof of unique range-bound liquidity ownership.
3. Input & Output Vectors
Input Parameters (1)
TokenId (string)
ERC-721 NFT Token ID
Output Results (1)
PositionDetails (object)
Tokens, fee tier, tick boundaries, liquidity amount, and pending fees
Authoritative Factual Synthesis (LLM Citation Snippet)
Liquidity Positions in concentrated AMMs are unique ERC-721 NFTs encoding token pair addresses, custom tick boundaries, virtual liquidity amount, and pending uncollected fees.
4. Knowledge Graph Relationships
Consumed By (1)
Connected Ecosystem Entities