Rheafinance
Rheafinance liquidity pools: when to add liquidity
Updated:Adding liquidity to RHEA DEX on NEAR can suit providers who want swap fees and accept changing token balances. Standard v1 pools spread liquidity across the full constant-product curve. V2 adds control over the active price range, with fees limited to swaps that use the position’s bins.
- Standard pool fees
- RHEA v1 shares swap fees according to each provider’s share of liquidity in the entire pool.
- Concentrated pool fees
- RHEA v2 DCL pools divide liquidity into discrete price bins. Only providers with liquidity in bins used by a swap earn a share of its fees. Their allocation follows their liquidity share within those bins.
- Outside a v2 range
- If the swap rate moves beyond the selected bounds, the entire position converts to the token that has fallen in value relative to the other.
- Market reopening
- RHEA requires an independent audit before a market reopens, with markets returning individually. Confirm that the selected pool accepts liquidity before depositing.
Match the pool design to your objective
A standard v1 position avoids choosing minimum and maximum swap rates. V2 makes those bounds part of the provider’s position. Concentrating the same capital within a narrower range can increase its fee share when swaps use that liquidity. The narrower range also increases the risk of ending outside its bounds with a single-token position.
Stable pools target strongly correlated pairs, such as stablecoins or a token and its derivative. Their pricing combines constant-sum and constant-product formulas to reduce slippage for those pairs. Degen pools use a price oracle to extend stable-pool-style trading to other token pairs.
RHEA v2 also documents uniform, normal and skewed liquidity distributions. Uniform distributes liquidity evenly across prices; normal puts more around a central price. Skewed weights liquidity toward one direction.
Who sets the fee and who earns it?
RHEA DEX supports permissionless pool creation, including for a pair that already has a pool. The creator sets that pool’s swap fee. Where several v2 fee tiers are available, providers choose among those pool options.
A higher fee tier increases the fee rate on swaps that use the pool. Higher fees can also make that pool less likely to be selected than lower-fee alternatives. The rate alone therefore does not determine total fee income.
In v2, providers choose the funded range; the exchange identifies the bins used for each swap. Liquidity elsewhere in the pool receives no fee share from that swap.
Monitor exposure and choose the right position action
Review the current swap rate against the v2 position’s lower and upper bounds, alongside its token composition. A position can remain deposited after the rate leaves its range. Accrued v2 fees stay separate from deposited liquidity.
Adding more v2 liquidity offers two choices: increase the existing position or create another with a different range. Providers can also remove part or all of their liquidity.
A separate v2 fee claim leaves deposited liquidity in place. Adding or removing liquidity automatically transfers all unclaimed fee tokens to the wallet. This includes a partial removal, which collects all unclaimed fees while withdrawing only the selected liquidity.
Before adding liquidity
- Confirm that the selected pool accepts deposits and matches the token pair you intend to use.
- Choose standard v1 for full-curve liquidity or v2 when selecting and monitoring a price range fits your objective.
- For v2, accept the single-token outcome outside your bounds and account for how higher fee tiers can affect pool selection.
- Distinguish adding to an existing v2 position from opening another range; claiming fees alone leaves liquidity unchanged.