Liquidity Pools

Liquidity pools are the backbone of KaleidoDex. Each pool consists of two tokens (e.g., ETH/USDC). Currently Kaleido use Constant Product Liquidity ( V2), Concentrated Liquidity (V3) coming later.

Key Features:

• Anyone can create a pool or add liquidity to new/existing pools.

• Liquidity providers (LPs) earn a share of swap fees (0.25% of all trades).

• LPs receive LP tokens representing their share of the pool.

Impermanent Loss Warning: LPs may experience impermanent loss if token prices diverge. However, fees and farming rewards can offset this.