Liquidity

Liquidity providers deposit two tokens into a pool. Traders swap against it, and the pool keeps a fee on each swap.

Adding liquidity

You pick a pool, two amounts and an expiry. Rooq makes two private locks, then the pool takes them.

• The pool takes its exact ratio and refunds the rest to your private balance.
• The first depositor sets the pool's starting price.
• If nothing fills by your expiry, your tokens come back.

Pool reserves are private, so the app works from a rounded price when it suggests amounts.

The very first deposit leaves a small amount of share supply locked in the pool for good, 1,000 units. This protects the pool's math from manipulation when it's nearly empty.

What you earn

The pool fee is 0.30% on testnet. It stays in the pool, so the value of your share grows with it. Test tokens have no value, so the fees are for learning how it works.

What you can lose

When the price of one token moves against the other, the pool ends up with more of the token that fell. Your share can be worth less than if you had held the two tokens. This is called impermanent loss, and it becomes permanent when you withdraw.

Rooq's pools are separate from perps. A loss on a perp position can't reach pool reserves or your liquidity.

Removing liquidity

Removing is a private request you sign with the minimum amounts you'll accept.

1. Choose how much to remove, your two minimums and an expiry.
2. The operator fills it.
3. Your tokens arrive as private notes.

If the operator ignores the request past expiry, your share goes back to idle, and you can try again. Reserves are private, so Rooq can't work out minimums for you. If you leave them blank, you accept any amount the pool pays.

Public chain

That a pool changed. Not your share or the amounts

Operator

The pool's reserves and its own pool records. Not your wallet

You

Your share and history

In a thin pool, one person's deposit can be inferred from the change in the published totals. How privacy works explains this.