How can I participate?

Before joining any pools, please review the information below to understand how AMMs work and determine the best strategy for you. How the AMM Pays You Instead of a traditional order book, the XRPL DEX uses liquidity pools (like an RLUSD/XRP pool) to let users swap assets instantly.

• When you deposit your assets, you become a Liquidity Provider (LP) and receive LP tokens representing your share of the pool.

• The Base Yield: Every time someone trades against that pool, they pay a fee (0–1%). That fee stays in the pool, steadily growing the value of your LP tokens.

• The Boost: On top of these standard fees, our Stay to Earn program drops additional rewards into your wallet just for keeping your liquidity active.

Managing Risk: Impermanent Loss The hidden cost of providing liquidity is something called impermanent loss.

• Because the AMM automatically rebalances to maintain the pool's ratio, if the price of XRP skyrockets (or tanks), the pool will adjust. You may end up holding more of the worse-performing token.

• If you withdraw your funds while the prices are heavily skewed compared to when you deposited, you might end up with less total value than if you had simply held the tokens in your wallet.

• It’s "impermanent" because the loss only locks in if you withdraw. If the prices return to their original ratio, the loss disappears. Plus, the combination of base trading fees and our boosted Stay to Earn rewards are designed to help offset this risk!

Single-Sided vs. Double-Sided Liquidity

• Double-Sided (Recommended): You deposit equal parts of both tokens (e.g., XRP + RLUSD). This exposes you to both trading fees and impermanent loss as the ratio shifts.

• Single-Sided: You deposit only one token, and the protocol automatically swaps a portion to balance the pair for you. It’s easier, but you are still exposed to the same price risks. *We suggest users to use the double side feature