Guides

Provide liquidity

Liquidity providers fill the pool that everyone else trades against, and earn fees for it. This guide covers adding and removing liquidity on the Pool page, what LPs earn, and liquidity risks.

What providing liquidity means

The trading pool needs inventory of both PT and SY to quote prices. Anyone can deposit that inventory. In exchange you receive LP tokens, a receipt for your share of the pool, and every trade that flows through pays a small fee that accrues to the pool you now co-own.

Adding liquidity

Deposits go in at the pool’s current ratio of PT to SY. On the Pool page, enter either side (PT amount or SY amount) and the form computes the other. The Limiting side label tells you which of your two balances runs out first. Adding liquidity moves both PT and SY into the AMM, so it needs an ERC-20 approval for each asset. The preview shows LP minted, your New share of the pool, and what stays in your wallet.

Need PT to pair with your SY? Split some SY first (see Deposit and split). One split produces the PT leg and leaves SY for the other side.

What LPs earn

  • Trading fees on every embedded PT leg in the book. A YT buy-and-sell round trip pays the fee twice.
  • Curve convergence. The curve moves its asset-denominated PT price toward one as maturity approaches. Because the AMM converts SY shares to asset units before pricing, that convergence is measured in the same units the tokenizer redeems in.

Removing liquidity

Enter an LP amount (your LP balance is shown) and the preview quotes PT received, SY received, and the Pool share burned. Withdrawals carry the same protection as swaps: a minimum-you-will-accept floor. If trading moves the pool past your tolerance between quote and submission, the whole withdrawal cancels itself. There are no partial fills.

A cancelled withdrawal still costs its small network fee. If the pool is busy, ask for a fresh quote instead of resubmitting a stale one.

Holding LP across maturity

At maturity the pool’s PT equals SY by definition, so withdrawing at that point is clean. Nothing forces you out at the boundary; LP positions can be withdrawn during the wind-down after maturity too. LP balances live in the AMM’s contract storage, which is permanent and does not expire (see Settlement and maturity).