Liquidity

Providing Liquidity

This page covers Topaz's v2-style pools — constant-product (volatile) and stableswap. For concentrated-liquidity Slipstream positions, see Concentrated Positions. The two are independent and can be used in parallel.

Pools on each network

These pool mechanics apply on BNB Chain, Robinhood Chain, Base, Ethereum and Arc. Pools, gauges, assets and fee settings belong to the selected network. BNB examples below describe the hub; read the selected pool for its current local configuration. Network availability.

Gauge-staked LPs earn TOPAZ on BNB and xTOPAZ on live spokes. Unstaked liquidity earns trading fees; each unit earns fees or emissions. V2 LP tokens can be partially staked, so a position can have separate staked and unstaked balances and prior rewards to claim. Concentrated NFTs stake as whole positions. Multichain emissions.

Before you LP

An LP earns fees on unstaked liquidity or emissions on gauge-staked liquidity. Compare those returns separately against impermanent loss and transaction costs before depositing.

  • Unstaked LP tokens earn their share of pool fees. Staking gives up ongoing fees on the staked portion.
  • Staked LP tokens earn the gauge reward: TOPAZ on BNB, xTOPAZ on live spokes. Votes determine the allocation.
  • ✓You experience impermanent loss when the two tokens diverge in price. For correlated pairs (stables, LSDs) this is tiny. For uncorrelated pairs it can be meaningful — fees and emissions are the offset. Read the IL primer.

Volatile vs stable pools

A v2 pool is either volatile (constant product, x · y = k) or stable (x³y + y³x ≥ k). The choice is permanent — you can't convert. The app surfaces the recommended type for each pair, but the underlying rule is:

  • ✓Correlated pairs (USDT/USDC, ETH/stETH, BTC/WBTC) → stable pool. Default fee 0.05%.
  • ✓Uncorrelated pairs (everything else) → volatile pool. Default fee 0.30%.
  • ✓Picking the wrong type bleeds value to arbitrageurs and hurts everyone in the pool.

Fees can be customized per pool by the protocol fee manager up to a 3% cap. See Pool Fees for the full fee story.

Adding liquidity

  1. 1Open Positions and find the pair (or create it).
  2. 2Verify pool type — stable or volatile. The first depositor sets the initial price ratio; subsequent depositors must match the current ratio.
  3. 3Enter an amount of either token. The app fills the matching amount based on the current ratio.
  4. 4Approve each token to the reviewed router. Regular wallets grant a maximum allowance once; batched smart-wallet plans use an exact grant.
  5. 5Submit. You receive an LP token representing your share of the pool. It's an ERC-20 in your wallet.
  6. 6Optional: stake the LP token in the pool's gauge to earn TOPAZ emissions on BNB or xTOPAZ emissions on spokes. See Staking in Gauges.
ℹThe MINIMUM_LIQUIDITY caveat
On the very first deposit to a pool, a small fixed amount of LP tokens (1,000 wei) is burned to the dead address. This prevents the "empty pool dust attack" — locking the price forever — and costs new pool creators ~nothing.

Withdrawing liquidity

Withdrawing is the same flow in reverse. Burn LP tokens, receive your share of both tokens back at the current pool ratio.

  1. 1If your LP token is staked in a gauge, unstake first (claim emissions while you're there).
  2. 2Open the pool’s position card in Positions.
  3. 3Choose an amount to remove (25%, 50%, 100%, or custom).
  4. 4Confirm. You receive both underlying tokens proportional to your share at exit.
⚠Withdrawing crystallizes IL
If the pool's price ratio has moved since you deposited, you'll receive a different mix of the two tokens than you put in. That's the moment any paper IL becomes realized P/L. If you expect prices to mean-revert and you're in no rush, sometimes waiting beats withdrawing immediately.

Zaps

The V2 Router has contract-level zap-in and zap-out paths, but this interface's regular V2 flow uses paired-token deposits. Contract support does not establish a signed or available UI flow.

For a single-token deposit into an existing Concentrated pool, use the separate liquidity zap guide. It creates a new NFT and offers staking through a separate review. The xTOPAZ vault zap is another contract family: it mints shares in locked TOPAZ, not LP tokens, and is outside the initial multichain interface release.

Creating a new pool

Anyone can create a new v2 pool through PoolFactory.createPool(tokenA, tokenB, stable). Once created, the address is deterministic via CREATE2 — the same two tokens with the same stable flag will always map to the same pool address.

  • ✓Tokens are sorted by address; the lower one is token0.
  • ✓Initial deposit sets the price ratio. Anyone can be the first depositor.
  • ✓Creating the pool alone doesn't add it to the app's discoverability — for that, see the integration guide on whitelisting.
  • ✓A pool only gets a gauge — and thus emissions — after Voter.createGauge() runs (permissioned).

Project teams listing a new pair should also read the Integration Guide for the full listing flow.

Continue reading

Concentrated Positions →

Mint, increase, decrease, collect, and burn Slipstream positions.

Pool Fees →

How fees are set, what dynamic fees do, and where your earnings come from.

Staking in Gauges →

Earn local gauge emissions in place of fees on the staked LP portion.

Impermanent Loss →

The structural cost of LPing — and what offsets it.