Liquidity Provision

Providing Liquidity at Launch

In the early phases, providing liquidity will be capped per pool. This is a security measure, and the cap will be increased over time.

Liquidity Rewards

Liquidity providers can earn rewards from up to four different sources:

• LPs accrue trading fees in pool tokens, as “organic” APR. This fee is subject to governance but will initially be set to 50% of the trading fee for the involved Swap Pool, and 30% for the associated Backstop Pool (see above)

• Eligible LPs earn a boost on their organic APR if they’re holding $sNABLA, as described above.

• Nabla incentivizes selected pools with $AMBER points rewards (users will have to stake their LP tokens to receive those rewards). Due to the limited number of pools and the liquidity cap during the launch period, the initial $AMBER distribution will be defined by the team. However, this will be handed over to governance over time, and $NABLA will be used for incentives instead of $AMBER. The distribution mechanism will consider different factors when rewarding pools, such as trading volume, organic APRs or pool liquidity.

• In addition to the above, the integrated incentive mechanism as well allows other protocols to incentivize “their” pools. They can incentivize liquidity to a pool by directly rewarding LPs with their native token or any token of their choice (e.g. USDC, ETH, points). These reward pools can be filled at any time, and 80% of those incentives will gradually be distributed to LPs, according to the share of staked LP tokens they hold (with the other 20% going to $NABLA stakers, see above).

Both “external” token incentives and $AMBER rewards can be claimed at any point in time, whilst the swap fees auto-compound through increased LP tokens.

Removing liquidity

Liquidity can be removed at any point in time (cooldown periods apply for Backstop Pool liquidity)