# Introduction

Alcor Swap AMM is a new decentralized exchange protocol that utilizes concentrated liquidity, a revolutionary approach to liquidity provision. Unlike the traditional constant product AMM model, concentrated liquidity enables liquidity providers to concentrate their funds within a specific price range. This brings numerous benefits, including:

1. Improved capital efficiency: With concentrated liquidity, liquidity providers can allocate their funds more efficiently within a specific price range. This enables them to provide more liquidity with the same amount of capital, resulting in improved capital efficiency.
2. Better price execution: Concentrated liquidity allows trades to be executed at more precise prices than constant product AMMs. This is because liquidity providers can concentrate their funds within a specific price range, resulting in tighter spreads and better price execution.
3. Reduced impermanent loss: Impermanent loss is a common issue faced by liquidity providers in constant product AMMs. However, concentrated liquidity can reduce the impact of impermanent loss by enabling liquidity providers to concentrate their funds within a specific price range.
4. Greater flexibility: With concentrated liquidity, liquidity providers have greater flexibility in managing their liquidity. They can adjust their liquidity provision based on market conditions and their risk appetite, enabling them to optimize their returns.
5. Increased fees income: Alcor Swap AMM offers the ability to set different fee tiers based on the liquidity concentration, which enables liquidity providers to earn more fees as their concentration increases. This incentivizes liquidity providers to concentrate their liquidity and leads to a more efficient market.
6. Range orders: Alcor Swap AMM also provides the opportunity for traders to place range orders, which allow them to execute trades within a specific price range. This is made possible by the liquidity concentration of the protocol, which enables the price of the asset to stay within a specific range, resulting in a more predictable market.

Overall, Alcor Swap AMM provides numerous benefits and opportunities over traditional constant product AMMs. We believe that this new approach to liquidity provision will be a game changer for decentralized exchanges, and we are excited to be at the forefront of this revolution.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.alcor.exchange/alcor-swap/introduction.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.