Liquidity Provision

Liquidity provision on Tidal AMM shares similarities with LPing on Uni v3, but also has more differences. For details, see Tidal AMM section.

Reminders for LPs:

• As of now, one LP can only add liquidity to one bin, or one price. Multiple LP positions under one wallet will be supported in future upgrades.

• Tidal Force has a PvP part, which could make LPs worse off compared to holding the initial yield-bearing assets if the LP's liquidity constantly stays below the system average price.

• A small fee is collected on the yield generated LP's liquidity on Tidal AMM. Future fee rate is subject to change under governance and is expected to be removed eventually Current yield fee rate formula:

$$yield \,fee\,rate=1\%+20\%*(10P-9)$$

where P is the current price of symToken.