Liquidity Provisioning UI

Liquidity Provisioning UI

Simplified UI for retail liquidity provision on Penumbra. Retail traders don't need to twiddle every knob but they do need a little guidance.

Simplified UI for retail liquidity provision on Penumbra. Retail traders don't need to twiddle every knob but they do need a little guidance.

Veil was the primary trading interface for the Penumbra DEX.

One of its core features was liquidity provision: users could deposit assets into the exchange and earn trading fees by supplying liquidity.

In practice however, retail participation in liquidity provision was low. Most liquidity was coming from users interacting directly with CLI tools instead of the UI.

The problem wasn’t the protocol.

The problem was the interface.

My job was to redesign the liquidity provisioning experience so normal users could confidently provide liquidity without understanding the mechanics of automated market makers.


The Problem

The original UI exposed far too much of the underlying mechanism.

To open a liquidity position, a user had to configure multiple parameters:

  • liquidity target

  • upper price bound

  • lower price bound

  • fee tier

  • number of positions

Each of these fields interacted with the others in non-obvious ways.

For example:

  • the system internally opened multiple positions to implement a strategy

  • positions were directional depending on the market price

  • users had to understand how base and quote assets would be split across price ranges

Even experienced crypto users found this intimidating.

One comment from a community member captured the issue well:

"I don’t use the LP UI because it’s confusing. I’m worried that if I do it wrong I’ll lose money."

The interface was technically accurate, but cognitively overwhelming.


My Role

I collaborated with the CTO, designer and engineering team to drive the redesign of the refreshed liquidity provisioning experience.

This involved:

  • analyzing usage patterns and community feedback

  • identifying the main sources of user confusion

  • researching liquidity UX patterns across other DEXs and wallets

  • working closely with design to simplify the interaction model

  • coordinating implementation with the frontend engineering team

The guiding principle for the redesign was simple:

Hide the complexity, not the capability.


The Redesign

The redesign focused on drastically reducing the number of decisions a user needed to make.

Instead of asking users to configure a strategy directly, the UI asked for just three inputs:

1. Amount

Users enter a single asset amount. The second asset auto-calculates based on the selected price range.

2. Liquidity Shape

Two simple strategy options:

  • Concentrated liquidity

  • Volatile liquidity

These correspond to common liquidity provision patterns but without forcing users to understand the mechanics.

3. Price Range

A simple slider centered around the current market price.

The system handled the rest automatically:

  • splitting liquidity across multiple positions

  • determining directional asset allocation

  • calculating reserve weighting

  • selecting the most common fee tier

  • managing the number of underlying positions

Instead of configuring the machine, users simply described their intent.


What Changed

The redesign moved several complex decisions from the user to the system.

Before

Users configured:

  • price bounds

  • number of positions

  • fee tiers

  • liquidity targets

This created high cognitive load and fear of misconfiguration.

After

Users configured only:

  • amount

  • liquidity strategy shape

  • price range

Everything else became automatic.


Results

The impact was immediate. LP positions opened and DEX liquidity increased and ust as importantly, the tone of community feedback shifted.

Users who previously avoided liquidity provision began experimenting with it.

The redesign turned liquidity provision from a specialist activity into something normal traders felt comfortable trying.

Lessons

This project reinforced a core product lesson:

Users don’t want to configure systems.

They want to express intent.

The original interface faithfully represented the mechanics of the protocol, but that fidelity came at the expense of usability.

By shifting complexity from the user to the system, we preserved the power of the protocol while making the feature approachable.

Sometimes the biggest product improvement isn’t adding capability.

It’s removing decisions.

Let's talk

Time for me:

Email:

gar@garwalsh.com

Reach out:

© Copyright 2026

Let's talk

Time for me:

Email:

gar@garwalsh.com

Reach out:

© Copyright 2026