Liquidity Pool and Liquidity Providers

What is Meta Pool liquidity pool (LP)?

A liquidity pool (LP) is a collection of funds locked in a smart contract. Meta Pool liquidity pool works for swapping:

  • stNEAR tokens to $NEAR

  • stAUR tokens to $AURORA

  • mpETH tokens to $ETH

LP tokens represent the user's share of the total amount of locked liquidity in several tokens (usually two tokens), in liquidity pool on the Meta Pool platform.

How to provide liquidity?

Here is the tutorial Liquidity step by step on how to do it.

What are the benefits of being a liquidity provider?

Being a liquidity provider in Meta Pool you will receive a % of the payed liquidity fees.

The liquidity provider gets reward every liquid-unstake operation. The APY is fully based on liquid-unstake fees.

Calm market, no operations => 0 fee, 0% APY; Active market => lot of fees, high APY.

Note: LP APY can be high if the LP pool is depleted, so you may see a similarly high commission up to 3%. Liquid unstake fee is 0,3%-1.5% are normal.

What is the liquidity fee?

The liquidity fee is the commission that you pay to swap tokens when unstaking.

  • $stNEAR to $NEAR

  • $stAUR to $AURORA

  • $mpETH to $ETH

How is the liquidity fee calculated?

Meta Pool liquidity fee is in a range from:

  • $mpETH to $ETH: 0.3% to 5%

  • $stAUR to $AURORA: 2%

  • $stNEAR to $NEAR: from 0.3% to 3%

It varies linearly according to the quantity of liquidity available in Meta Pool liquidity pool (LP).

How is the APY for liquidity providers calculated?
  1. We take the LP price measure in NEAR/AURORA/ETH from 7 days ago, and the LP price now.

  2. Divide /7 to get a day-to-day increase.

  3. Multiply by 365 to annualize, compute the price in a year if the current trend is maintained.

  4. Compute APY based on current price vs price in a year.

Who can be a liquidity provider?

Anyone who provides $NEAR/$AURORA/$ETH tokens to Meta Pool for allowing liquid unstake be done.


How can I become a liquidity provider?

Anyone can be a liquidity provider in Meta Pool, you just need to go to Meta Pool App and go to Liquidity section and click to add liquidity.



Last updated