Documentation

Basic Pool liquidity management

Provide liquidity to a Basic Pool by depositing two tokens in the ratio the pool currently holds. Choose to earn AERO rewards or Fee rewards, with no range management needed.

Why provide liquidity?

Deposits earn rewards through one of two mechanisms. AERO-earning deposits receive a continuous stream of AERO Rewards directed to the pool by Token Operators. Fee-earning deposits keep a portion of the fees generated by the pool. Basic Pools offer straightforward liquidity provision with no active range management required.

  • AERO-earning deposits receive AERO Rewards directed to the pool by Token Operators. Fees generated by AERO-earning liquidity route to the Token Operators who allocated to the pool.
  • Fee-earning deposits keep a portion of the fees generated by the pool. AERO Rewards do not accrue to Fee-earning deposits.

The pool list and the deposit page show both APRs side by side: AERO APR and Fees APR.

How it works

When liquidity is provided to a Basic Pool, the capital is deployed along the pool's whole price curve automatically. There is no price range to set. The only choice is which reward stream the deposit earns. This guide starts from the pool list on the Liquidity page. Creating a new pool is covered in Pool creation. Basic Pools come in two types:

  • Volatile pools for uncorrelated pairs, such as ETH/USDT.
  • Stable pools for assets that trade near parity, such as stablecoin pairs.

Select a pool and manage liquidity, step by step

Step 1: Find and select the pool

Open Liquidity. The Pools tab lists every pool, and the Stocks and FX pills narrow it to those categories. Each pool shows its network and type, such as Basic Volatile, along with TVL, Volume, Fees, AERO APR, and Fees APR. Use the search bar to find a pool by token, name, or address, or select Filter and Sort to narrow the list. Select Deposit on the chosen pool's row to open the deposit form.

Step 2: Choose the reward type

Under Rewards, select AERO rewards or Fee rewards. Each card shows its current APR. A greyed-out card means that reward type is not available for this pool.

Step 3: Enter the amounts

Enter the amount for the Deposit token and the Paired with token. Each field shows the available balance and a USD value. Under Deposit settings, check the Slippage tolerance and select Edit to change it. Select Continue.

Step 4: Approve and confirm

The review screen shows Rewards, both token amounts, and Total deposit. Allow access to each token in the wallet (Allow access to [token], once per token), then confirm the deposit. A Deposit confirmed message appears, and View deposits opens Portfolio > Deposits.

Step 5: Monitor and claim

The deposit appears under Portfolio > Deposits with its pair, network, Total rewards with a Claim button, the deposit value, AERO APR, and Fees APR. Select a row to open Manage deposit.

Managing the deposit

Manage deposit has three tabs:

  • Overview. Total rewards with Claim rewards, the reward type, the current token amounts, and Total deposit.
  • Add liquidity. Add capital to the existing deposit. Toggle between depositing the pair directly and Deposit any token, enter the amounts, and select Increase.
  • Withdraw. Choose a percentage with the slider or the 10% to 100% chips, review the token amounts, and select Withdraw. The two underlying tokens return to the wallet.

Things to know before providing

  • There is no range to manage. Basic Pools spread capital along the pool's whole price curve.
  • Exiting an AERO Rewards deposit early can cost rewards. Withdrawing within a short minimum holding period, set per pool, forfeits a share of the unclaimed AERO on the deposit. The forfeited AERO is not paid to the depositor. Adding to a Basic Pool deposit restarts the holding period, but rewards already claimed are kept. Fee-earning deposits have no early exit penalty.
  • Leftover dust comes back automatically. Adding liquidity rarely uses tokens in exactly the right ratio. Whatever is left over returns to the wallet at the end of the transaction.
  • Impermanent loss applies. When the two tokens' prices diverge, the deposit can be worth less than holding the tokens outright.

See also