Adding Liquidity

Join the LSU Pool

The LSU Pool accepts the majority of LSU tokens for validators that:

  • Are accepting stake

  • Have consistently high uptimes

  • Do not have very high fees

The above eligibility criteria ensure decent yield performance of the pool. Underperforming validators could impose a lower yield on the pool (although the implementation of liquid staking in the Radix protocol does not include slashing so LSUs can never go down in value versus XRD).

Currently, CaviarNine can determine which LSUs are eligible for the pool by using its admin badge. CaviarNine can also remove underperforming LSUs from the pool using the accumulated reserve fee. It is envisaged this curation task will be transferred to the FLOOP DAO in the future.

Liquidity can be added via the Validator page or directly on the LSU Pool page.

There is NO FEE for adding liquidity to LSU Pool

Via the Validator page

The Validator page clearly shows which LSUs are eligible for the LSU Pool (far right column).

To add liquidity, simply hover over the validator you're staked to and click the LP button to bring up a simple dialog box for adding liquidity.

Via the LSU Pool page

The LSU Pool page has a simple dialog box for providing liquidity and shows your current pool position via My Liquidity.

LSULP token - your liquidity

When you add liquidity to the pool you receive 2 items:

  • LSULP tokens representing your share of the value of the LSU Pool

  • A soulbound credit receipt that records which type of LSU you deposited

The credit receipt is described in more detail here and is important for removing liquidity.

The composition of the LSU Pool liquidity can be seen in graphical and tabular form:

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