Liquidity pooling
Learn about liquidity pooling in THORWallet. Understand how to provide liquidity and earn rewards.
Last updated
Learn about liquidity pooling in THORWallet. Understand how to provide liquidity and earn rewards.
Last updated
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. ā 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. ā 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.