Liquidity pooling

Learn about liquidity pooling in THORWallet. Understand how to provide liquidity and earn rewards.

A liquidity provider is a stakeholder that provides liquidity (a liquidity pair) into a pool that is needed to run a decentralized exchange. He gets rewarded with a share of the trading fees generated with that pool which is reflected in the APR. At THORChain a liquidity provider has two options for how to provide liquidity: symmetrical or asymmetrical. ‍ Symmetrical means 50% Rune and 50% the asset you've chosen. Asymmetrical means 100% in your chosen asset. It is important to note that if you provide liquidity asymmetrical, a swap is pursued in the back, which leads to a symmetrical allocation anyway. ‍ This means a liquidity provider is always exposed to two assets: Rune and your chosen asset. The APR is earned on both of those assets and auto-compounded in the pool.

Mayachain also follows the same mechanics as Thorchain for liquidity pooling. Instead of Rune, Asset is paired with CACAO.