AMMs mark a new page in the development of decentralized finance as people now are able to trade their assets in a completely decentralized way. There now are no intermediaries standing between users, only smart contracts, making trading trustless, and cheap. To achieve that, there need to be people who first put up capital to create liquidity and facilitate the trades, hence the name liquidity providers (LPs). This, however, poses another problem of capital inefficiency because a large amount of capital sits idle in those pools waiting to be traded. This leads to either LPs moving their capital around trying to get the most out of it, or their money is stuck in the pool and out of circulation.