Liquidity Pools
QsnDEX liquidity pools are the core primitive that enables decentralized token trading. Each pool holds reserves of two tokens and uses an automated market maker (AMM) algorithm to determine prices.
Multi-Fee Tier Architecture
QsnDEX supports four distinct fee tiers, allowing liquidity providers to select the tier best suited to the asset pair:
| Fee Tier | Rate | Intended Use Case |
|---|---|---|
| Ultra | 0.01% | Stablecoin pairs (e.g., USDC/USDT) |
| Low | 0.05% | Correlated assets (e.g., wstETH/ETH) |
| Standard | 0.30% | Most trading pairs |
| Exotic | 1.00% | Long-tail and volatile pairs |
Fee revenue accrues directly to LP token holders proportional to their share of the pool.
Dual AMM Models
Constant Product (x * y = k)
The default AMM for standard pairs. The product of both reserves remains constant after every trade (minus fees). This model supports arbitrary price ranges and is suitable for uncorrelated assets.
StableSwap (A = 85)
An amplified constant product curve optimized for assets that trade near a 1:1 ratio. The amplification coefficient A = 85 concentrates liquidity around the peg, resulting in significantly lower slippage for stablecoin and correlated-asset swaps.
Pool Creation
Pools are deployed through the Factory contract using CREATE2, which produces deterministic addresses. Given two token addresses and a fee tier, the pool address can be computed off-chain without querying the blockchain.
poolAddress = CREATE2(factory, keccak256(tokenA, tokenB, fee), initCodeHash)
LP Tokens
When you add liquidity to a pool, you receive LP tokens -- standard ERC20 tokens with EIP-2612 permit support. These tokens represent your proportional share of the pool reserves and can be:
- Transferred to other addresses
- Used in staking pools for additional yield
- Approved via gasless
permitsignatures (no separate approval transaction required)
Pool Analytics
The QsnDEX interface provides real-time pool metrics:
- TVL (Total Value Locked): Combined USD value of both token reserves.
- 24h Volume: Total swap volume in the past 24 hours.
- APR from Fees: Annualized return to LPs based on recent fee revenue relative to TVL.
- Reserve Ratio: Current ratio of token reserves, reflecting the implied price.
Pool Charts
Each pool page includes interactive price and liquidity charts powered by the Lightweight Charts library (TradingView charting engine). Charts display historical price action, volume bars, and liquidity depth for the selected pair and fee tier.