Liquidity Pools
Earn rewards by providing liquidity and contributing to the Aztecas ecosystem
💧 What are Liquidity Pools?
Liquidity pools are the foundation of Aztecas DEX, allowing users to deposit token pairs (ETH/USDC) to facilitate trading for others. As a liquidity provider, you earn fees from every trade while contributing to a more efficient and liquid marketplace.
✨ Key Features
Dual-Token Pools: Provide ETH and USDC in balanced pairs
Automated Market Making: Smart contract-driven price discovery
Fee Sharing: Earn from every swap transaction
LP Token Rewards: Receive tradeable liquidity provider tokens
Flexible Withdrawals: Remove liquidity at any time
🏊 Pool Information
ETH/USDC Main Pool
Pool Ratio: Automatically balanced 50/50
Current TVL: Dynamic based on market conditions
Fee Tier: 0.3% per transaction
APY: Variable based on trading volume
🚀 How to Provide Liquidity
Adding Liquidity
Connect Wallet: Ensure you have both ETH and USDC
Select Amounts: Enter equal USD values of both tokens
Review Ratio: Confirm the current pool ratio
Approve Tokens: Allow smart contract access
Add Liquidity: Execute the transaction
Receive LP Tokens: Get proof of your pool share
Removing Liquidity
View Positions: Check your liquidity positions
Select Amount: Choose percentage to withdraw (25%, 50%, 75%, 100%)
Preview Returns: See expected ETH and USDC amounts
Confirm Withdrawal: Execute removal transaction
💰 Earning Mechanics
Fee Collection
Trading Fees: 0.3% of every swap transaction
Proportional Sharing: Fees distributed based on pool share
Auto-Compounding: Fees automatically added to pool
LP Token Benefits
Transferable: Trade your pool positions
Composable: Use LP tokens in other DeFi protocols
Governance: Future voting rights in platform decisions
📊 Pool Analytics
Track your liquidity performance:
Pool Share
Your percentage of total pool
Fees Earned
Total trading fees collected
Impermanent Loss
Potential vs holding separately
Volume 24h
Daily trading volume in pool
⚠️ Important Considerations
Impermanent Loss
Occurs when token prices diverge significantly
Temporary loss that may recover with price movements
Consider during high volatility periods
Smart Contract Risks
Pool contracts are audited but carry inherent risks
Never invest more than you can afford to lose
Understand the technology before participating
🎯 Optimal Strategies
Start Small: Begin with modest amounts to learn
Monitor Markets: Stay informed about price movements
Diversify Risk: Don't put all funds in one pool
Long-term View: Best returns often come from patience
🔧 Pool Management
Real-time Monitoring: Track performance 24/7
Mobile Friendly: Manage positions from anywhere
Emergency Withdrawals: Quick exit options available
Customer Support: Dedicated assistance for pool providers
Become a liquidity hero with Aztecas pools - earn while you contribute to DeFi.
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