---
description: >-
  Lixir vault's reinstatement of fungible, concentrated liquidity through a
  fractionalized liquidity position
---

# LV Tokens

Normally when depositing liquidity in Uniswap V3 directly, one is given a NFT (Non-Fungible Token) that represents the liquidity position taken on that pair. This loss of **fungibility** is a direct consequence of the architecture allowing every liquidity provider to provide liquidity in a different price range.&#x20;

When depositing liquidity in one of the Lixir Vaults, the user is given Lixir Vault tokens (LV tokens) in return to represent the user's share of the vault's contents. This is actually similar to how Uniswap V2 returns LP tokens to represent one's share of the pool, but in Lixir's case this fungibility is effectively reobtained achieved by fractionalizing the vault's liquidity position in Uniswap V3.

By doing so, Lixir can efficiently pool together funds and significantly reduce the gas expenses per unit liquidity. It also allows other dApps to more easily leverage Uniswap V3 since liquidity is fungible and requires no manual management.

