Ctrlk
For the complete documentation index, see llms.txt. This page is also available as Markdown.

Classic Liquidity

Stable + Classic AMM under one model with dynamic fees

Ionex offers a unified "Classic Liquidity" experience that combines Stable AMM pools (for correlated assets) and Classic/Volatile AMM pools (for uncorrelated assets). This consolidates concepts similar to Stable and Classic AMMs in other protocols while adding dynamic fees tailored to market conditions.

Pool types

Stable pools (correlated assets)

  • Designed for assets that trade closely together (e.g., USDe/USDT, wETH/stETH)

  • Targets minimal slippage around parity and efficient routing for stable swaps

  • Default fee: 0.04% (subject to dynamic adjustments)

Classic/Volatile pools (uncorrelated assets)

  • Designed for assets that diverge more in price (e.g., INX/USDT, wETH/INX)

  • Prioritizes price discovery and deeper spreads where volatility is higher

  • Default fee: 0.18% (subject to dynamic adjustments)

Fees are dynamic and can adjust based on market conditions (volatility, volume, and liquidity). Defaults are provided for reference.

Dynamic fees

Fees can adapt to market conditions to balance trader costs and LP returns. Higher volatility or lower depth can raise fees to compensate LPs, while calmer conditions can lower fees to improve execution.

Related: Dynamic Fees

Liquidity provider benefits

  • Trading fees: LPs earn a share of swap fees proportional to their liquidity in the pool

  • Emission rewards: Staked LP tokens may earn $oINX per program parameters

  • Voting incentives: veINX voters can direct emissions; partners may add external incentives

Risks and considerations

  • Impermanent loss: More pronounced in volatile pairs; stable pairs typically exhibit lower IL

  • Range of outcomes: LP returns depend on volume, volatility, fee tier, and pool composition

  • Smart contract and integration risk: See Security & Audits sections

When to choose each pool type

  • Choose Stable when both assets are correlated and trade near parity

  • Choose Classic when assets are uncorrelated and you expect meaningful price movement

Cross-links

PreviousProviding liquidity
NextConcentrated liquidity [Coming soon]

Last updated