Overview
Liquidity Pools
Liquidity pools enable decentralized trading by pooling tokens in smart contracts. LPs deposit assets and earn a share of trading fees; returns vary with market moves due to impermanent loss. Notus currently supports Uniswap v3 only.
With Liquidity Pools, you can:
- Create new Uniswap v3 positions (set price range and fee tier)
- Automatically create the Uniswap v3 pool contract if it doesn't exist; otherwise add to the existing pool
- Increase/decrease liquidity on an existing position by amounts or by percentage (reduce only)
- Get required token amounts for a target budget and price range
- Collect accrued fees from positions
- Discover pools and fetch details plus historical stats
Key concepts
- Concentrated liquidity (Uniswap v3): Positions span price ranges; fees accrue within those bands.
- Position NFT: Identifies the Uniswap v3 position you modify.
- Impermanent loss: Price divergence can reduce LP value versus simply holding assets.
Liquidity provision carries market risk (including impermanent loss). Validate quotes and slippage. Notus does not custody funds; assets stay under your wallet's control.
Next steps
- Get started: Liquidity Pools Quickstart
- Explore swaps and routing: DeFi Swap and Swap Providers
- Monitor your onchain activity: Analytics Overview
- Automate events and alerts: Webhook Overview