> For the complete documentation index, see [llms.txt](https://nobots.gitbook.io/nobots-gitbook/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nobots.gitbook.io/nobots-gitbook/providing-liquidity.md). # πŸ’§Providing Liquidity ### πŸ’° Providing Liquidity on NoBots By depositing assets into NoBots liquidity pools, you earn a share of trader losses, position fees. These pools back leverage trading and swaps on the World Chain platform. Available pools include WETH/USDC, WBTC/USDC, and WLD/USDC. #### πŸ“Š Understanding Market Pools A Market pool consists of three main components: * Index Price Feed: Positions are opened and closed based on this price feed. * Long Token: The volatile asset that backs long positions (e.g., WETH). * Short Token: The stable asset that backs short positions (e.g., USDC). ⏱️ Yield begins accruing immediately after your deposit transaction is confirmed. APR figures are variable and change based on trading volume and pool utilization. #### πŸ“₯ How to Deposit into a Pool To start earning yield, you must supply tokens to a market pool. WLD on World Chain is required to pay for transaction gas fees. πŸ“ Step-by-Step Deposit: 1. Navigate to the Earn page. 2. Select the pool you wish to deposit into (e.g., WETH/USDC). 3. Enter the amount you want to supply (in pair). 4. Review the details, paying close attention to the price impact. 5. Click Deposit and approve the transaction in your wallet. βš™οΈ Deposit Methods & Efficiency: * Pair Token Deposit (Balanced): By supplying an equal value of both the Long Token and the Short Token (e.g., 50% WETH and 50% USDC), you maintain the pool's equilibrium. This method typically results in zero or minimal price impact. * Single Token Deposit (Imbalanced): If you supply only one asset, you are shifting the pool's ratio, which triggers a Pool Imbalance Price Impact. (Not supported yet) #### πŸ“€ How to Withdraw from a Pool When you are ready to exit your position, you can withdraw your liquidity along with your accumulated earnings. πŸ“‹ Step-by-Step Withdrawal: 1. Navigate to the Earn page and select the pool you deposited into. 2. Enter the amount you wish to withdraw from your liquidity position. 3. Token Selection: By default, withdrawals are processed as a pair. However, you can select the option to withdraw your liquidity as a single token (either the Long Token or the Short Token). 4. Carefully review the specific amount of each token you will receive and the associated price impact. 5. Click Withdraw and approve the transaction in your wallet. ⚠️ Important Withdrawal Notes: * Automatic Fee Settlement: Any earned fees from trading activity, trader losses are included automatically in your withdrawal and settled to your wallet during the transaction. * Price Impact Logic: Pool imbalance price impact applies to all withdrawals. Withdrawing an over-supplied asset helps rebalance the pool and typically results in the order being executed at a better price, whereas withdrawing an under-supplied asset may result in the order being executed at a worse price. *available* *liquidity = pool value* = *pool* *tokens - netPnL + totalPendingBorrowingFees* #### πŸ’² Token Pricing & Yield Calculations Pool Token Pricing The price of a Market pool token is determined by the pool's total value: Token Price = (pool value) / total supply * Pool Value: Includes the USD worth of deposited tokens plus accumulated borrowing fees. * Fees: 63% of collected position fees flow directly into the pool, increasing the token price over time (37% goes to the protocol). #### πŸ›‘οΈ Protocol Protections & Risks πŸ” Solvency Protections: * Price impact: Trades/deposits that increase imbalance pay a fee; those that reduce it receive better pricing. * Adaptive funding & Borrow fees: The dominant side pays the minority side to incentivize balance. Borrow rates rise steeply above optimal utilization thresholds. * Open interest caps & ADL: Limits prevent single markets from over-committing. Auto-Deleveraging (ADL) automatically reduces profitable positions if the PnL-to-pool ratio exceeds safety limits. ⚠️ Inherent Risks: * Smart Contract Risk: Vulnerabilities in code are always a possibility. * Counterparty Risk: The Market pool is the counterparty to traders. If traders profit, that value is paid out from the pool. * Asset Risk: Bridged tokens depend on bridge security, and pegged tokens carry de-pegging risks. Sudden price spikes can liquidate one side of a trade, temporarily creating large open interest imbalances. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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