How to use Auto-Pools
Trader Joe avatar
Written by Trader Joe
Updated over a week ago

Contents

  • How to access Auto-Pools

  • The Auto-Pool Page

  • Entering an Auto-Pool

  • Entering an Auto-Pool Yield Farm

  • Withdrawing from an Auto-Pool

  • Your Risks


How to access Auto-Pools

  • Select the Pool Page

  • Click the Auto-Pool tab

  • Select a specific Auto-Pool: EG AVAX-USDC

On the Auto-Pool tab you will see a range of data points, highlighting total liquidity, the amount of liquidity inside the Farm and further details such as your position, fees earned by the Auto-Pool, the gross APR generated by the fees and also the Auto-Pool Farm APR.


Auto-Pool Page

There are four key segments on the Auto-Pool Page:

  • Description of the Auto-Pool and risks

  • Auto-Pool Liquidity

  • Add or Remove Liquidity

  • Auto-Pool Yield Farm

Key Information

Your access to and use of Auto-Pools through this interface is entirely at your own risk and could lead to substantial losses, including but not limited to impermanent loss and smart contract risk. Before participating, you should ensure that you fully understand these risks.

Divergence Risk: Assets may experience significant divergent price movements during volatile conditions. This means your deposit is exposed to the price movements of both tokens in the pair, and your exposure to each token can also change. Volatile conditions may lead to increased impermanent/divergence loss.

Adding and Removing Liquidity

Adding Liquidity

You can add any amount of tokens when depositing assets into an Auto-Pool, eg you can deposit 30% and 70%, 50% and 50% or even 0% and 100%. When you add liquidity, the Auto-Pool will automatically rebalance your liquidity to match the underlying composition of the Auto-Pool. This is to ensure the underlying asset composition is protected. This means that your tokens may be swapped to match that composition, this will be done automatically when you enter.

Removing Liquidity

When removing your tokens from the Auto-Pool, you will receive back tokens that represent your % share of the Auto-Pool in the current composition of the assets. Eg if the Auto-Pool has a perfect 50/50 split of tokens, you will receive back Token A and Token B in a 50/50 split.

When withdrawing, there may be a withdrawal timer that could be anywhere up to 60 minutes (or more). Your assets are withdrawn from the Auto-Pool on the next pending rebalance. You must perform this in two transactions:

  • First transaction: Confirm you would like to withdraw

  • Second transaction: 'Redeem' once you are able to withdraw

Auto-Pool Farms

Some Auto-Pools may come with a Yield Farm that distribute additional token rewards on top of any yield earned from fees. These yield farms can be accessed directly in the Auto-Pool page as seen in the image above. Once you have deposited your tokens into the Auto-Pool, you can then proceed to depositing your receipt token into the yield farm. Any rewards earned in the yield farm are streamed in real time and are held waiting for you to collect them.


⚠️ Risk Warning

Auto-Pools offer an automated way to access a Liquidity Book Pool. However, like all forms of providing liquidity, it's not without risks and should only be undertaken with a thorough understanding of the underlying Auto-Pool and market conditions.

Assets may experience significant divergent price movements during volatile conditions. This means your deposit is exposed to the price movements of both tokens in the pair, and your exposure to each token can also change. Volatile conditions may lead to increased impermanent/divergence loss.

Your capital is at risk. Your assets may be worth less when you withdraw them compared to when you deposited them.


For more questions about Auto-Pools please visit our Discord server

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