SNAP Basic Training 006: Your First LP Band

A Field Guide to Launching Your Position

At some point, every recruit stops watching swaps and starts holding the field.

Liquidity provision is not passive income. It is positioning. You are choosing where to deploy capital, what price range to defend, and how long you are willing to hold ground while the market moves around you.

This training walks you through launching your first LP band on SNAP. Not theory. Not optimisation tricks. Just the mechanics, the mindset, and the mistakes to avoid when you deploy for the first time.

What an LP Band Actually Is

On SNAP, liquidity is concentrated. That means you do not spread your funds across every possible price. You define a range. That range is your LP band.

Inside the band, your liquidity is active. You earn fees. You contribute depth. You get paid for providing execution.

Outside the band, your liquidity is idle. It does nothing until price re-enters your range.

Think of your LP band as a zone you choose to defend. Too wide and your capital is diluted. Too narrow and you risk being pushed out of the action quickly.

Before You Deploy

Before you click anything, answer three questions.

What pair am I providing liquidity for
Is this a volatile pair or a stable one
How often am I willing to manage this position

Stable pairs tolerate tighter bands and less monitoring. Volatile pairs demand wider ranges or more active management. There is no correct answer. Only trade-offs.

If you do not want to check your position regularly, widen your band. If you are active and watching price, you can afford to be more precise.

Choosing Your Price Range

This is where most first-time LPs overthink things.

A simple starting approach works fine.

Look at the current price. Set your lower bound somewhere you are comfortable buying more of the base asset. Set your upper bound somewhere you would be happy selling into.

You are not predicting the future. You are defining acceptable outcomes.

If price moves down, you accumulate one side.
If price moves up, you accumulate the other.
If price stays inside, you earn fees.

The band reflects your conviction, not your ego.

Deploying the Position

When you launch an LP position on SNAP, you will:

• Select the pool
• Choose your price range
• Allocate your capital
• Approve the tokens
• Confirm the mint transaction

Once confirmed, your position exists as an NFT. That NFT represents your exact band, liquidity amount, and fee tier.

From that moment on, your LP is live.

What Happens After Launch

After deployment, three things matter.

Fees
You earn fees only while price trades inside your band. Narrow bands earn higher fee concentration but are exited more easily.

Range status
If price leaves your range, your position stops earning. This is not a failure. It is information.

Position management
You can leave the position as is, adjust the band, or close and redeploy elsewhere. Each choice has costs and consequences.

There is no requirement to constantly rebalance. Many LPs lose money by over-managing.

Common First-Time Mistakes

Almost everyone makes at least one of these.

Bands that are too tight
- You get pushed out immediately and wonder why fees stopped.

Ignoring volatility
- Wide price swings chew through narrow bands fast.

Forgetting approvals
- Old approvals remain active. Clean them up after deployment.

Expecting passive returns
- LPing is active exposure. Fees are compensation for risk.

Learning happens by doing. Keep position sizes small at first.

How LP Bands Fit the SNAP System

Liquidity is not isolated on SNAP.

Your LP contributes to swaps.
Swaps generate fees.
Fees feed into incentives.
Incentives align voters and emissions.

By launching an LP band, you are not just earning fees. You are supporting the entire flow of the system. This is how capital becomes influence over time.

Final Briefing

Your first LP band does not need to be perfect. It needs to be intentional.

Choose a range you understand. Accept the outcomes. Watch how price behaves. Learn how your position reacts. The field teaches faster than theory ever will.

Training 007 will cover managing and adjusting LP positions once they are live.

Until then, hold your ground wisely.