Slipstream liquidity management
Slipstream allows liquidity providers to concentrate capital within a specific price range, earning more per dollar than full-range Basic Pools. The trade-off: concentrated deposits require active management and carry greater impermanent loss if prices diverge sharply.
- Higher capital efficiency. A dollar deployed in a tight range generates more in trade fees and AERO Rewards than the same dollar deployed full-range.
- Active control. Liquidity providers choose exactly where capital is deployed. Tight ranges earn more but require monitoring; wide ranges earn less but need less frequent repositioning.
- Two earning options. Each deposit earns either AERO rewards or Fee rewards (a portion of the fees generated).
For liquidity provision with no range management required, see Basic Pool liquidity management.
Key concepts
Reward types
Each deposit earns one reward stream, chosen when the deposit is created. The app shows the two options as AERO rewards and Fee rewards, each with its current APR.
| Reward type | Description |
|---|---|
| AERO rewards | The deposit receives a continuous stream of AERO Rewards directed to the pool by Token Operators. Fees generated by AERO-earning liquidity route to the Token Operators allocating to the pool. |
| Fee rewards | The deposit keeps a portion of the fees generated by the pool. AERO Rewards do not accrue to Fee-earning deposits. |
If one card is greyed out, that reward type is not available for the pool.
In-range vs. out-of-range
A Slipstream deposit earns only while the current trading price is within the chosen range.
- In range. The current price is between the low and high bounds chosen for the deposit. The liquidity is actively enabling trades and earning rewards.
- Out of range. The current price has moved outside the range. The liquidity is not being used and stops earning until price returns to the range. An out-of-range deposit also no longer holds both tokens: as price moves through the range, the liquidity is progressively traded into the token that is falling in relative value, and once price exits the range that conversion is complete. The deposit must be repositioned to resume earning.
APR calculation and updates
| APR type | Calculation |
|---|---|
| AERO APR | Based on the current rate of AERO Rewards directed to the pool. |
| Fees APR | Calculated from the fees the pool generates. It changes as market activity changes. The fee rate itself is dynamic. Fees APR reflects both how much a pool trades and the rate those trades pay. |
The pool list and the deposit page show both APRs side by side. Both rates are variable and fluctuate with market conditions.
Choosing the range
Concentrated liquidity offers flexibility based on risk tolerance and market outlook. Range selection should be decided before depositing.
| Range type | Pros | Cons |
|---|---|---|
| Tight ranges (+/-3%, +/-8%) | Earn more per dollar deployed while in range. | Require active monitoring. If price moves outside the range, earnings stop and the deposit must be repositioned. |
| Wide ranges (+/-15% or wider) | Stay in range longer through price swings. Less frequent repositioning. | Earn less per dollar than tight ranges, though more than full-range. |
| Full | Covers every price, so the deposit is never out of range. No repositioning needed. | The lowest earnings per dollar of the three options. |
Add liquidity step-by-step
This guide starts from the pool list on the Liquidity page. Creating a new pool is covered in Pool creation.
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; Slipstream pools carry a concentrated liquidity number, such as CL 2000, 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 modal.
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: Set the price range
Under Price range, pick a preset (+/-3%, +/-8%, +/-15%, or Full) or set the bounds directly. The Low and High cards each have minus and plus controls, with a 0 shortcut on Low and an infinity shortcut on High. The Liquidity distribution and Historical price charts (1D, 1W, 1M, 1Y) help place the range, and the pair toggle flips the price direction. Range bounds snap to the pool's price grid, so the exact low and high may adjust slightly to the nearest available prices.
Step 4: 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. Connect a wallet if prompted and continue.
Step 5: Approve and confirm
The review screen shows the range, Status, 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 6: Monitor and claim
The deposit appears under Portfolio > Deposits with its pair, network, CL number, Total rewards with a Claim button, the deposit value, its in range or out of range status, AERO APR, and Fees APR. Select a row to open Manage deposit.
Managing the deposit
Manage deposit has three tabs: Overview, Add liquidity, and Withdraw.
Overview
Shows Total rewards with Claim rewards, the reward type, Status, the current token amounts, Total deposit, and the Low, Current, and High bounds.
Add liquidity
Adds capital to the existing deposit at the same range. Toggle between depositing the pair directly (Deposit [pair]) and Deposit any token, enter the amounts, and select Increase.
Withdraw
Choose the percentage to withdraw with the slider or the 10%, 25%, 50%, 75%, and 100% chips. The screen shows how much of each token is withdrawn and the Total withdraw. Select Withdraw. The two underlying tokens return to the wallet.
Changing the range
A deposit's price range is fixed when it is created and cannot be edited. To move the range, withdraw the deposit and open a new one at the new range. Withdrawing is the point where any impermanent loss accrued so far is realized.
Important considerations
In-range status determines earnings
A deposit earns only while the trading price is within the chosen range. Once price moves outside the range, earnings stop until price returns. Missed earnings are never paid retroactively: AERO directed to the pool while the deposit is out of range flows to in-range AERO-earning deposits instead, and if the pool has none it is not paid out to any deposit in that pool. Check the deposit's status under Portfolio > Deposits regularly.
Early exit penalty on AERO Rewards deposits
Withdrawing an AERO-earning deposit within a short minimum holding period, set per pool, forfeits a share of the unclaimed AERO accrued on that deposit during the period. The forfeited AERO is not paid to the depositor. Rewards already claimed are kept. Fee-earning deposits have no early exit penalty.
Leftover dust returns automatically
Adding liquidity rarely uses tokens in exactly the right ratio. The leftover amount is returned to the wallet at the end of the transaction. Small token remainders in the wallet after a deposit are normal.
Impermanent loss
When the two tokens' prices diverge, a deposit can be worth less than holding the tokens outright. Concentrated deposits carry more impermanent loss than full-range deposits.