Crescent Docs
  • Introduction
    • What is Crescent?
    • Crescent DEX
      • Market
      • Pool (Liquidity Pool)
      • Position
      • Order-book and Tick system
      • Hybrid DEX
      • Batch Matching
      • Sequential Matching
      • Multi-hop Swap(SlipLess Swap)
      • Ranged Liquidity
        • Comparison with Basic position
        • Liquidity Amplification Factor
        • Possibility of Change to a Single-Coin position
        • Multiple Positions in the Pool
      • Fee
      • Farming
        • Current Farming vs Legacy Farming
      • Market Maker Incentives
        • MarketMaker Apply / Incentive Claim
        • MarketMaker Scoring
    • Liquid Staking
      • Staking vs. Liquid Staking
      • Overview of Staking Rewards
      • Calculations for Staking Rewards
      • Liquid Staking Validator
    • Snowball (Liquid AMM)
      • Mint & Burn sb-Token
      • Reward Auction
        • How to Participate
    • Gas and Fees
    • Liquid Governance
    • Partnership
    • Crescent Derivatives
    • Crescent DEX (legacy)
      • Coin Pair
      • Liquidity Pool
      • Legacy Farming Rewards (LP Incentives)
      • New Farming Rewards (LP Incentives)
      • Orderbook and Tick System
      • Hybrid DEX
      • Batch Execution
      • Ranged Pools
      • Market Maker Incentives
        • MarketMaker Apply / Incentive Claim
        • MarketMaker Scoring
      • Synergy with Crescent Boost
  • Developer Guide
    • CLI and API
      • AMM module
        • CLI Reference
        • API Reference
      • Exchange module
        • CLI Reference
        • API Reference
      • LiquidStaking module
        • CLI Reference
        • API Reference
      • LiquidAmm module
        • CLI Reference
        • API Reference
  • Technical Guide
    • Market Maker
    • Farming Planner
  • Other Information
    • Network Configurations
    • Crescent Design Assets
Powered by GitBook
On this page
  1. Introduction
  2. Crescent DEX (legacy)

Liquidity Pool

PreviousCoin PairNextLegacy Farming Rewards (LP Incentives)

Last updated 1 year ago

For a coin pair, a liquidity pool can be created by anyone in Crescent DEX, where the liquidity pool is to reserve the amount of two different coins of the coin pair.

Users can deposit a pair of coins into the pool so that those users become liquidity providers. A liquidity provider can be anyone who provides liquidity by depositing reserve coins into the pool.

In Crescent DEX, a liquidity pool takes a role of automated market maker (AMM) by utilizing CPM (Constant Product Model) to calculate available liquidity.

The pool price is defined as the ratio of the number of the quote coins and the number of the base coins in the pool. For the coin pair A-B, the pool price is the number of coin B divided by the number of coin A in the pool.

Crescent DEX will support multiple liquidity pools for a given coin pair with introducing later ranged pools.

Liquidity pool (LP) for a coin pair and LP providers