🥃Liquid & Liquid Pool

Overview

• A contributor who adds liquidity can earn 0.2% swapping fees from the pairs they offer.

• As proof of provider, you will receive xLiquid tokens. E.g: When a user deposits AxO and MATIC to a pool, they will receive the tokens AxO-MATIC. xLiquid tokens are proportional shares of pooled assets.

• By staking these xLiquid tokens at pools, you will earn AxO.

How it works

If at the time of a trade, there are 1000 xLiquid tokens representing 1000 MATIC and 1000 AxO, each xLiquid token would be worth 10 MATIC and 10 AxO. If one user trades 100 MATIC for 100 AxO, and another traded 100 Axo for 100 MATIC, then there would now be 100.2 AxO and 100.25 MATIC in the pool. This means each xLiquid token would be worth 10.0025 MATIC and 10.0025 AxO when it is withdrawn

Existing pool:

You need to provide tokens in a 1:1 value ratio to the liquidity pool. This means that if you are adding to, say, a AxO-MATIC pool, and wish to provide 1000 MATIC worth of liquidity, you would need to convert approx 500 MATIC to an equal value of AxO tokens first via our Swap.

New pool:

If the pool you wish to provide liquidity to does not exist, you can create it of course! Just provide the tokens and off you go. As the first liquidity provider, you set the initial exchange ratio (price) if one of the tokens in the pair does not exist yet on SpookySwap. This often quickly corrects itself through arbitrage and by more liquidity providers adding to the pool.