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
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  1. Introduction
  2. Crescent DEX

Pool (Liquidity Pool)

PreviousMarketNextPosition

Last updated 1 year ago

Pools act as a cornerstone within the Automated Market Maker (AMM) DEX ecosystem. They furnish the liquidity required for traders to swap tokens seamlessly without the need for direct counterparts. The liquidity contributors—pool investors—form an integral part of this process, reaping rewards from the exchange.

Also, on Crescent DEX, pools play a crucial role in aggregating liquidity from users and facilitating token trades based on predefined rules. In the past, there were multiple pools offering liquidity across different price ranges, and users could choose to participate in any of them. However, the current pool system represents a more unified solution that centralizes and manages user-generated positions in a single place.

A defining feature of pools is a parameter termed "tick spacing", which specifies the minimum interval between successive orders they place within the order book. The selection of tick spacing value is pivotal as it harmonizes the trade-off between the number of skipped ticks and user convenience. A larger tick spacing omits more ticks, compromising user convenience, while a smaller one heightens user convenience but increases the load on the module. This tick spacing value isn't one-size-fits-all—it may differ according to the specific market and can be adjusted via governance.

Liquidity Pool and Market