> For the complete documentation index, see [llms.txt](https://docs.horizondex.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.horizondex.io/resources/faq.md).

# FAQ

<figure><img src="/files/NSiNsdYo6TPbC7aePCQu" alt=""><figcaption></figcaption></figure>

### Q: What is HorizonDEX?

A: HorizonDEX is the first Concentrated Liquidity DEX built on Linea. Unlike other traditional Automated Market Maker liquidity DEXs, HorizonDEX liquidity pools utilize the capital invested in the pool more efficiently and provide better returns for the liquidity providers and better trade execution with low slippage for traders.

### Q: How can I trade on HorizonDEX?&#x20;

A: It's very easy to swap tokens on HorizonDEX. You just need a Metamask with some tokens in it. Head over to [Swap](/dex/swap.md) for more informaiton.

### Q: What is concentrated liquidity?&#x20;

A: Concentrated liquidity refers to the practice of allocating liquidity within a specific price range in a DEX. It allows liquidity providers to focus their funds where they expect trading activity is most likely to occur, improving capital efficiency.

### Q: How can I provide liquidity on HorizonDEX?&#x20;

A: To provide liquidity on HorizonDEX, select the tokens you want to provide liquidity for, specify a price range, and deposit an equal value of both tokens into the liquidity pool. You'll earn fees from traders who swap tokens within your allocated range. Check [Add Liquidity](/dex/add-liquidity.md) page for a more detailed explanation.

### Q: What is impermanent loss?&#x20;

A: Impermanent loss is the temporary loss in value experienced by liquidity providers due to the changing price ratio between tokens in a liquidity pool. HorizonDEX provides tools to monitor and understand the potential impact of impermanent loss.


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