CL Liquidity Pools
Understanding the CL Pools
FUSION Wide Pool
The wide-range strategy optimizes liquidity distribution across an extensive price range between two assets. It proves highly effective for assets with low price correlation and significant fluctuations. By generating consistent fees during periods of market volatility, especially after key releases or unforeseen news, this strategy offers advantages in the long run, with potential savings in impermanent loss outweighing higher fees linked to narrower ranges.
Fee structure: Dynamic
FUSION Narrow Pool
The narrow range strategy centers on a tight price range between two assets. It excels with assets exhibiting high and positive price correlation, concentrating the range where most trading activity occurs. This approach maximizes fee-earning potential during low market volatility periods. However, in the long term, the higher fees may not fully offset the increased risk of impermanent loss.
Fee structure: Dynamic
FUSION Stable Pool
Similar to traditional Stable Pools, this pooling strategy is specifically designed for assets expected to consistently trade at near parity, such as stablecoins or synthetics. The FUSION Stable Pool allows for improved price execution compared to the traditional Stable Pools, resulting in higher volumes and fee generation.
However, in case of a depeg between the paired assets, the pool could become entirely imbalanced and consist of only one asset, making it impossible for arbitrage bots to rebalance the pool. This extreme situation would not occur with the traditional stable AMMs.
Fee structure: Dynamic
FUSION Dynamic Pool
The Dynamic strategy distributes the liquidity in a tight range around an evolutive price peg between a yield accruing token and its underlying based asset.
This pool not only addresses the Liquid Staked Derivatives (LSD) tokens that are accruing the staking rewards over time (e.g $ETH-$frxETH or $BNB-$ankrBNB), but also any other tokens integrated into a yield-generating market.
Fee structure: Dynamic
Manual Range Pool
The manual range strategy empowers LPs to define their preferred price range and offers highly customizable adjustments. This option is ideal for skilled investors confident in their market navigation abilities.
With the Manual Range Pool, Market Makers have the opportunity to build on top of Lynex and earn an impressive 97% of the swap fees generated by their operations. A thoughtful 3% of the swap fees are retained to bribe FUSION gauges, serving as a revenue share to veLYNX holders.
It's important to note that Manual Range Pools are not included in the gauges system, making them ineligible for earning $LYNX farming rewards.
Fee structure: Dynamic
Lynex's liquidity pools cater to a broad spectrum of investment risk profiles. Our flexibility empowers protocols to customize their liquidity strategies and achieve their desired outcomes with precision.
Trading fees
The trading fees on Lynex are kept in the same tokens being traded. The fees are dynamic and based on market conditions and volatility.
You can provide liquidity without staking the LP tokens. In this case, you may earn all of the trading fees for your proportionate share of the pool. There are no deposit or withdrawal fees. You can remove liquidity at any time.
Manual Range Pools: LPs earn 97% of the fees
FUSION Pools: LPs do not earn anything if their positions are not staked
Earn LYNX
Provide liquidity and stake your LP tokens to earn $LYNX. There are no deposit or withdrawal fees. You can withdraw and remove liquidity at any time.
In which proportion should I provide my liquidity?
FUSION Pool: Tokens need to be added in a 50:50 ratio
Manual Range Pool: For this pool, the UI will automatically suggest the correct ratio for adding liquidity. The suggested ratio may differ from the 50:50 ratio.
Last updated