> For the complete documentation index, see [llms.txt](https://docs.nabla.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nabla.fi/protocol-owned-liquidity-pol.md).

# Protocol-owned Liquidity (POL)

Nabla is designed to over time own a growing share of the liquidity in all its pools, with an initial focus on the Backstop Pool. This Protocol-owned Liquidity (POL) will not only reduce the costs of operations for the protocol (as a lower share of swap fees and $NABLA incentives have to be paid to external LPs), but as well serve as a growing liability reserve which will stay in the pools forever\*. Such a liability reserve in all pools, but i.e. in the Backstop Pool, will over time further reduce the risks for other LPs.\
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\&#xNAN;*\*unless the DAO decides otherwise*