# 2️⃣ Constant LPs (e.g., Uniswap V2)

Fuul enables projects to incentivize Liquidity Providers (LPs) in constant product AMMs such as Uniswap V2, Sushiswap, and similar DEXs.

### How It Works

* Fuul tracks LP token balances for a specific pool — either directly on-chain or via subgraphs
* Each provider's share is calculated as their LP token balance divided by the total LP token supply
* Rewards are distributed proportionally based on each provider's share of the pool

### Key Differences from Concentrated Liquidity (V3)

|                           | Constant Product (V2)                  | Concentrated Liquidity (V3)                                   |
| ------------------------- | -------------------------------------- | ------------------------------------------------------------- |
| **Liquidity range**       | Full price range (0 to ∞)              | Custom price bands                                            |
| **Position tracking**     | Single LP token balance                | Per-position tick ranges                                      |
| **Reward calculation**    | Simple share of total supply           | Weighted by liquidity share, Token A share, and Token B share |
| **Out-of-range handling** | N/A — all liquidity is always in range | Configurable (Active Liquidity vs Distribution Formula)       |

### Why Use Fuul for V2 LPs?

* **Simple and transparent** — reward calculation is straightforward: your share of the pool = your share of rewards
* **Accurate tracking** — LP token balances are fetched directly from the blockchain
* **Flexible payouts** — combine with referral rewards, set fixed or variable amounts, and target specific pools


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