# FAQ

**What is Reactor?**

Reactor is a next-gen concentrated liquidity DEX built on Fuel. It gives users deep liquidity, low fees, and reliable execution through a simple interface that makes both trading and providing liquidity easy.

**What is concentrated liquidity?**

In traditional AMMs, liquidity is spread thinly across the entire price curve, from 0 to ∞| Concentrated liquidity changes this by allowing LPs to define custom price ranges for their capital. By focusing liquidity where trades actually happen, it dramatically increases capital efficiency and amplifies the potential for fee earnings.

**Why does Reactor matter?**

Reactor matters because it concentrates liquidity around active trading ranges. For LPs, that means higher rewards with less capital. For traders, it means deeper markets, better prices, and lower slippage. The result is a faster, smoother, and more efficient DEX experience for everyone.

**How do LPs earn on Reactor?**

LPs earn a share of the swap fees from any trades that happen while their position is “active”, meaning the market price falls within their selected range. The tighter and more relevant the range, the higher the capital efficiency and potential earnings.
