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Basic Pools
Discover the mechanics of Basic Pools and the benefits of providing liquidity on Ociswap.
Ociswap's Basic Pool (
BP
) uses Radix's native "Resource Pools" as a building block. In particular, it utilises the TwoResourcePool (TRP
), which is a liquidity pool that contains a pair of digital assets (e.g. $XRD/$OCI
). ThisTRP
holds the market's liquidity for a single pool and is exclusively managed by its corresponding BP
. By making use of the
TRP
, the BP
can provide pool units (LP-tokens) that are fully compatible with the official Radix Wallet. This ensures a great user experience, because the Radix Wallet transparently showcases the underlying tokens, while allowing users to seamlessly access and intuitively manage their funds at all times. To understand the design concepts of the
BP
, it's crucial to grasp which functions are provided by the TRP
and how the BP
is built around it:
1.Instantiate Pool Allowing users to create aBP
with a correspondingTRP
to hold its liquidity. 2.Add LiquidityAllowing users to provide liquidity to aBP
, which is deposited into theTRP
using itsContribute
function. Liquidity is provided in token pairs, matching the pool's ratio. 3.Remove Liquidity Allowing users to withdraw their liquidity from theBP
via theTRP
'sRedeem
function. 4.Swap Allowing users to execute trades through theBP
. During the swap, theBP
utilises theProtected Deposit
andProtected Withdraw
functions of theTRP
to amend its token holdings.
Users can also interact with the
Redeem
function of the TRP
directly from the Radix Wallet, allowing them to withdraw liquidity at any time.- Swaps: The
BP
uses a Constant Product Automated Market Maker formula to create a market and calculate prices and trading outputs. - Liquidity Provider Fees: The
BP
imposes fees upon swap execution, with the specific trading fee rate established during the liquidity pool's creation. These fees can be configured to 0.01%, 0.05%, 0.3%, or 1%. All fees are awarded to the liquidity providers of theTRP
and can be claimed by redeeming the underlying liquidity. - Auto-Compounding: The
BP
consistently reinvests the trading fees back into the liquidity pool. This boosts returns and creates a hassle-free experience for liquidity providers.
- Basic Pools v0 are launched with the introduction of Babylon. These pools are set to transition to Basic Pools v1 once thorough code audits are completed.
- Locking liquidity is not enabled for the v0 pools.

Last modified 2mo ago