Liquidity
What is Liquidity Providing?
Liquidity providing means depositing a pair of tokens into a Pool. Deposited tokens are automatically used for other users’ swap transactions, earning fee rewards each time a trade occurs. Liquidity Providers (LPs) are the most essential participants in the GIWATER ecosystem.
How Pools are Created
Before you can provide liquidity, a pool for that token pair must exist. Launch Pool is the function that creates a new liquidity pool (swap pair) on GIWATER. This is not a token sale — it’s opening a new liquidity market on the DEX.
| Before Pool Creation | After Pool Creation |
|---|---|
| TOKEN ↔ USDC swap: ❌ Not possible | TOKEN ↔ USDC swap: ✅ Possible (if liquidity exists) |
Once a pool is created, LPs can deposit tokens and start earning rewards. The first LP to deposit determines the initial price, so be aware that a price significantly different from the market rate may result in immediate arbitrage losses.
Liquidity Provision & Staking
To earn emission rewards, simply depositing is not enough. Staking must be completed to activate emission rewards.
Types of Rewards
| Reward | Description | How to Receive |
|---|---|---|
| Swap Fees | LP’s share of fees generated in the pool | Auto-accrued → Claim via Rewards menu |
| Emission Rewards | Weekly $TER allocated by veTER votes | Auto-distributed after Epoch ends |
Swap Fee Structure (Strategic Choice)
A small fee is deducted with each swap. How that fee is distributed depends on whether the LP has staked their LP position.
When LP is Staked
100% of fees are directed to veTER voters to fuel the ecosystem flywheel. In exchange, LPs receive $TER Emission rewards, which often exceed base fee income.
| Recipient | Amount |
|---|---|
| veTER Holders | 100% of swap fees |
| LP | Emission rewards (instead of fees) |
When LP is Not Staked
LPs receive 90% of swap fees directly. The remaining 10% is contributed to veTER voters to support governance stability.
| Recipient | Amount |
|---|---|
| LP | 90% of swap fees |
| Emission Rewards | None |
Staking your LP position shifts your income source from direct fee collection to Emission rewards, while routing 100% of fees to veTER holders. You can choose the strategy that fits your participation style.
GIWATER CLMM Presets
In CLMM, price ranges are divided into units called Ticks. Ticks are logarithmic price units where 1 Tick = 0.01% price change. Tick Spacing is the minimum interval between price boundaries that LPs can select.
Smaller Tick Spacing allows more precise range setting — advantageous for stable assets. Larger Tick Spacing means coarser range setting but reduces management burden, making it suitable for volatile assets.
GIWATER offers 5 standard pool presets matched to asset characteristics:
| Tick Spacing | Fee | Price Step | Best Pairs |
|---|---|---|---|
| 1 | 0.01% | ~0.01% / tick | stETH/ETH, WBTC/BTC — highly correlated assets |
| 10 | 0.05% | ~0.10% / tick | USDC/USDT, USD1/USDC — fully pegged stables |
| 50 | 0.30% | ~0.50% / tick | ETH/USDC, BTC/USDT — general volatility pairs |
| 100 | 1.00% | ~1.00% / tick | New token/USDC — high-volatility small tokens |
| 200 | 2.00% | ~2.00% / tick | Extreme volatility tokens(Meme Tokens pairs |
Preset selection guide: Choose based on how tightly the two tokens’ prices are correlated. The stronger the peg, the smaller the Tick Spacing. The more volatile the price, the wider the Tick Spacing needed for safety.
Withdrawal Notes
- Withdrawal is available anytime, in any amount. There is no lock-up period.
- If the price ratio of the two tokens has changed since deposit, you may receive a different quantity than deposited (see Impermanent Loss).
- The order is: Unstake → Burn LP position → Withdraw tokens.
Checking My Liquidity Status
In My Portfolio → Liquidity tab you can view in real-time:
- Current deposited token quantities & USD value
- Accumulated rewards (fees + emissions)
- Pool list with APR