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

1. Connect Wallet: Ensure you have both ETH and USDC

2. Select Amounts: Enter equal USD values of both tokens

3. Review Ratio: Confirm the current pool ratio

4. Approve Tokens: Allow smart contract access

5. Add Liquidity: Execute the transaction

6. Receive LP Tokens: Get proof of your pool share

Removing Liquidity

1. View Positions: Check your liquidity positions

2. Select Amount: Choose percentage to withdraw (25%, 50%, 75%, 100%)

3. Preview Returns: See expected ETH and USDC amounts

4. 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:

Metric	Description
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

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Become a liquidity hero with Aztecas pools - earn while you contribute to DeFi.