# Concentration

In the constant product model (x **⋅** y = k), liquidity is provided across the price range from 0 to infinity. In contrast, concentrated liquidity adds depth to a market by providing capital in a limited price range, thereby improving capital efficiency.&#x20;

There are several methods of concentrating liquidity, but Lifinity takes the simple yet unique approach of applying leverage to the value of k. This is achieved by simply multiplying k by the desired amount of concentration c, which determines the amount of liquidity provided:

$$
x ⋅ y = c ⋅ k = K
$$


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