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Pooling
Liquidity Pools
Ref Finance charges a customisable fee for all trades. The fee depends on the pool fee, which is defined at the creation of the pool, and cannot be modified once the pool is created. The pool fee usually varies from 0.05% to 0.3%.
A liquidity pool is a pool of two or three tokens, e.g. NEAR and REF tokens. This pool is what allows users to trade the two tokens.
Contrary to the Stableswap pool or Tri-Pool (three tokens, cf. Stableswap function), only liquidity pools with two tokens are fully permissionless. Anyone can create a two-token liquidity pool on Ref Finance.
Users can earn a share of the trading fees by depositing tokens into the pool (also known as "adding liquidity"). Users will receive LP tokens, representing their share of the pool.

Pool APR

Pool APR is the yield you accrue by adding liquidity to a pool. You earn 80% of the pool fee for all trades on the associated pair (or triple for stablecoin pool) proportional to your share of the pool.
For regular pools (Swap function), if there is no account to receive the Referral Fee, it goes to all LPs of that pool as a form of increased LP tokens
For stablecoin pools (StableSwap function), if there is no account to receive the Referral Fee, it goes to the Protocol Fee as a form of increased LP tokens
Fees are added to the pool, accrue in real-time, and can be claimed when you withdraw your Liquidity.
Your share will be accrued in real-time and will be paid in addition to your existing position when you remove liquidity from the pool
Providing liquidity is not without risk, as you may be exposed to Divergence Loss or Imparmanent Loss (IL).
Simply put, impermanent loss is the difference between holding tokens in an AMM and holding them in your wallet. - Beginner’s Guide to (Getting Rekt by) Impermanent Loss, Nate Hindman, 2020
Or in other words, Liquidity Providers (LPs) can make more money by not providing liquidity into Ref Finance.

How to add liquidity to a pool?

First, make sure that you are connected to Ref Finance with your wallet.

Step 1: Open the list of pools by Clicking on Pools > View Pools

Step 2: Find the pool you want to add tokens into, you can use the search bar function

Step 3: After finding the corresponding pool, verify the details of the pool (i.e. Pool Fee)

If you cannot find the pool you want to provide liquidity into OR if you are not satisfied with the pool fee and/or pool ratio, please go to How to create a pool?

Step 4: Click on Add Liquidity

Step 5: Enter the amount you want

Step 6: Select Add Liquidity

Step 7: Approve the transaction (i.e. using NEAR wallet)

Congrats, you are now a liquidity provider (LP) on Ref Finance!

How to create a pool?

First, make sure that you are connected to Ref Finance with your wallet.
When do you need to create a new pool on Ref Finance? Usually when:
  1. 1.
    The pool exists but you are not satisfied with the existing pool fee: either you think the pool fee is too high or too low
  2. 2.
    The pool exists but you think the ratio (reserves token A to reserves token B) is not accurate
  3. 3.
    The pool simply does not exist yet

Step 1: Click on Pools > View Pools > Create Pool

Step 2: Select both tokens

Order does not matter. For example, if you want to provide REF and DAI tokens. You can select REF in the left field and DAI in the right field.

Step 3: Select the pool fee

As a LP, you need to find the right balance between having an attractive/competitive swap fee for traders and mitigating the risk of your Divergence Loss, by increasing the pool APR with higher fee, for example.

Step 4: Verify information

Step 5: Click on Create

Step 6: Approve the transaction (i.e. using NEAR wallet)

Congrats, you have created a pool! You can now provide liquidity to the new pool by following the guide How to add liquidity to a pool?

How to track your liquidity position(s)?

First, make sure that you are connected to Ref Finance with your wallet.

Step 1: Click on Pools > Your Liquidity

How to remove liquidity from a pool?

First, make sure that you are connected to Ref Finance with your wallet.

Step 1: Click on Pools > Your Liquidity

Step 2: Select the pool you want to remove liquidity from

Step 3: Enter the amount of LP tokens (shares) you want to remove

Step 4: Click on Remove Liquidity

Step 5: Approve the transaction (i.e. using NEAR wallet)

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Pool APR
How to add liquidity to a pool?
Step 1: Open the list of pools by Clicking on Pools > View Pools
Step 2: Find the pool you want to add tokens into, you can use the search bar function
Step 3: After finding the corresponding pool, verify the details of the pool (i.e. Pool Fee)
Step 4: Click on Add Liquidity
Step 5: Enter the amount you want
Step 6: Select Add Liquidity
Step 7: Approve the transaction (i.e. using NEAR wallet)
How to create a pool?
Step 1: Click on Pools > View Pools > Create Pool
Step 2: Select both tokens
Step 3: Select the pool fee
Step 4: Verify information
Step 5: Click on Create
Step 6: Approve the transaction (i.e. using NEAR wallet)
How to track your liquidity position(s)?
Step 1: Click on Pools > Your Liquidity
How to remove liquidity from a pool?
Step 1: Click on Pools > Your Liquidity
Step 2: Select the pool you want to remove liquidity from
Step 3: Enter the amount of LP tokens (shares) you want to remove
Step 4: Click on Remove Liquidity
Step 5: Approve the transaction (i.e. using NEAR wallet)