Basic Pools
What is an AMM?
An Automated Market Maker (AMM) is a smart contract that holds reserves of two tokens and prices trades using a mathematical formula rather than order books. When a trader exchanges one token for another, the contract executes the trade immediately against those reserves. The reserves shift, which moves the price according to the formula. This design creates always-on liquidity with no intermediary required.
What are Basic Pools
Basic Pools are Aero's full-range AMM. LPs deposit two tokens; the pool uses that liquidity across the full price curve.
Pool curve types
Basic Pools use one of two pricing models depending on the pair type:
| Curve type | Pricing model | Best for | Typical pairs |
|---|---|---|---|
| Volatile | Constant-product invariant (x * y = k), standard AMM curve | Any pair where assets are not expected to track each other closely | ETH/USDC, AERO/ETH, emerging token pairs |
| Stable | Stable-swap curve (x^3 * y + x * y^3 = k) | Pairs with expected price correlation | USDC/USDT, wrapped variants of the same asset |
How they work
A Basic Pool holds reserves of two tokens. Trades move the reserves along a fixed invariant, and the pool is always active: every trade at any price generates a fee in that pool.
Each trade takes a fee that accrues to Token Operators and liquidity providers. The fee rate is static, set by the pool's fee module, rather than the per-tick escalation used by Slipstream.
Basic Pools share Aero's reward and routing stack with Slipstream.
| Aspect | How it works |
|---|---|
| AERO Rewards | Basic Pools receive AERO Rewards from Token Operators, the same as Slipstream. |
| MEV Capture | Trades paying a high priority fee (typically arbitrage) pay an extra fee, captured by the same protocol-wide MEV module Slipstream uses. The value flows to Token Operators as Exchange Revenue. Fee-earning liquidity providers keep a portion of the fees generated, including MEV capture. |
| Routing | Aero's routing engine quotes Basic Pools and Slipstream across available pools, including mixed routes that hop through both, and a single router contract executes the trade. |
| Contract Architecture | On Aero, Basic Pools deploy as separate Volatile and Stable contracts with their own factories. |
Customizable aspects of the pool
Customize a Basic Pool deposit across these dimensions:
| Detail | Options / description |
|---|---|
| Pool curve | Volatile (any pair) or Stable (pairs trading near par) |
| Deposit amount | Initial token balances to be deposited in the pool |
| Deposit type | AERO-earning (receive AERO Rewards) or Fee-earning |
| Fee rate | Set per pool by the fee module; current rate shown on pool detail view |
| Network availability | Basic Pools deploy on every network Aero supports. Stable variants may not be deployed on every network; check Liquidity tab for local availability |
Getting started
Open the Liquidity tab, choose a pair, and select the Basic Pool option if one exists. Confirm the deposit. All deposits appear in the Portfolio and begin earning fees and AERO Rewards immediately based on the pool's reward type.
For step-by-step instructions including fee rate considerations and choosing between Volatile and Stable pools, see the Liquidity Management user guide.
For integrators and developers, technical documentation lives in Aero's GitHub repositories.