💧Pools

Provide liquidity to the pool and receive part of every swap's fee.

Here you will learn about the liquidity pools, their types on DeDust, how they work, how to deposit and withdraw the liquidity to/from pools. And how to earn on providing liquidity.

What is a Liquidity pool

Very simplified, liquidity pool is a 'trading pair' of two cryptocurrencies on a decentrilized exchange (DEX), serving to allow users to swap one crypto for another, i.e. TON to USDT.

If more complicated, liquidity pool is:

• a kind of vault, a storage, containing a combination (usually a pair) of cryptocurrency tokens (usually in 50/50 proportion), allowing users to buy from (or sell to) that pool one token for another,

and on the other hand,

• a smart contract deployed in the blockchain — a program code with a set of strict rules, defining how a specific liquidity pool operates and executes the swaps, initiated by users.

Once a pair of assets (tokens) is placed to the liquidity pool, users can start trading those assets. Then, putting certain amount of one token to a pool ('selling' it to the pool) user gets in return some amount of another token from that pool ('buying' it from the pool), according to its exchange rate.

Only the proportion (amounts) of two assets in a pool defines one's 'price' expressed in another, and defines their exchange rate in that specific pool. And the more (or assets, in total) the pool contains, the less will be the price impact (exchange rate deviation) with every swap in it.

For every exchange in a pool it withholds a fee, called Trading fee — from a user performing the swap.

How it works on DeDust

• The trading fees might vary in different pools.

• 80% of trading fees is distributed between all pool's liqidity providers, according to their share in it.

• Another 20% of fees is used to buyback $DUST tokens from market and reward holders for staking.

• The fee may be deducted either from trader's amount of tokens that he spends, or from amount of tokens he gets after swap (or from both). Depending on pool's properties.

• The trading fee is only withheld if a swap was successful.

• With every swap each liquidity provider's portion of trading fee earnings is:

  • auto-compounded to the total amount of provider's tokens in the pool (added to his position), in case of Classic and Stable-swap pools, or

  • accumulated on a separate ballance and available for claim anytime, in case of CPMM v2 pools.

Filters on Pools page

Switch between All pools and My pools tabs to see details only on pools you're providing liquidity to. Use filters to find relevant pools for more specific cases:

• Pool type — choose between different volatile pool types and stable-swap pools

• Coins filter — view only pools with selected tokens

• Boosted — pools with additional boost rewards

Pools containing at least one non-whitelisted token will be shown on Pools page only after you import the non-whitelisted token(s).