Providing Liquidity

Add liquidity to the StablePlaza pool

The StablePlaza pool can only operate if enough liquidity is provided to make swapping tokens possible. In return for providing liquidity, these liquidity providers receive a cut of the transaction fee of 0.03% as a reward.

Two-thirds of the transaction fees are rewarded to the liquidity providers and one-third to the DFP2 holders who stake their DFP2 on the StablePlaza pool.

Liquidity can be provided in any of the listed stablecoins and the price impact is very low up to 5 times the TVL of the StablePlaza pool. That means that if the TVL of the StablePlaza pool is currently 10 million, you can safely add up to 50 million in liquidity without a serious price impact.

There is no trading fee to add liquidity to the StablePlaza pool, as opposed to the DefiPlaza pool where the normal trading fee of 0.1% applies. The reason for this is to make Curve-like meta pools possible in the future.

Removing liquidity does have a low price impact of 0.74% due to the inner workings of the StablePlaza pool. That means that if you remove 10,000 USD from the StablePlaza pool, you will receive 9,246 USD.