Liquidity pools

A liquidity pool is a pair of tokens locked in a smart contract. Instead of matching a buyer to a seller, the protocol's automated market maker (AMM) trades directly against the pool: it always holds inventory on both sides, which is what lets swaps settle instantly and keeps slippage low. TRANT's AMM can swap any ERC-20, including synthetics.

What a pool pairs

A TRANT pool typically holds one of:

• a synthetic and the collateral it is minted against: the market people use to enter and exit that synth; or
• $TRANT and a collateral asset, the market for the token itself.

Both sides are held 50/50 by value. As trades move the balance, the AMM re-prices the pair so the pool stays roughly balanced.

Providing to a pool

Say you want to commit $20,000 to a pool. You deposit $10,000 of each token and receive that pool's LP tokens, a claim on your share of the reserves. From there you can:

• hold the LP tokens and collect a proportional share of the trading fees the pool earns; and
• stake them for liquidity mining to earn $TRANT on top.

Redeem the LP tokens at any time to take back the underlying pair. See Providing liquidity for the step-by-step, and Risks for impermanent loss.