Single-sided liquidity is a revolutionary AMM that allows you to deposit a single asset to earn auto-compounded yield. The yield is derived from the arbitrage profit from the spread between the quoted oracle and pool price and the swap fee.
The distinction between stable, primary, and hyper pools lies in the types of assets they hold. Stable pools are composed of stablecoins, primary pools house ecosystem tokens, while hyper pools cater to more volatile assets.
Price inventory risk which is common for any market maker. This risk occurs when the price of the assets used for market making declines in value in excess of the fees generated.
50% of fees are sent directly to LPs in the native asset of the token pool. The rest of the fee distribution details can be found in our Fee Share docs.
APY is calculated based on the swap fees generated by the liquidity pools on a 3 day rolling average.