Liquidity Pools Typology

FUSION (Automated Concentrated Liquidity AMM)

Gamma - Narrow

The narrow range strategy focuses on a tight price range between two assets.

This strategy works well for assets with high and positive price correlation as it concentrates the price range where most trading activity occurs. The Narrow Range also maximizes the fee-earning potential during periods of low market volatility. However, in the long term, higher fees may not compensate for the higher impermanent loss risk.

Fee structure : Dynamic

Gamma - Wide

The wide-range strategy involves distributing liquidity over an extensive price range between two assets.

This approach is especially effective for assets with low price correlation and substantial price fluctuations. The strategy generates consistent fees during periods of market volatility, especially when high token volatility is expected, such as after a key release or unforeseen news. In the long run, the savings in impermanent loss will likely outweigh the higher fees associated with a narrow range.

Fee structure : Dynamic

Gamma - Stable

Similar to the v1 Stable Pool, this pool strategy is specifically designed for assets expected to consistently trade at near parity, such as stablecoins or synthetics. The FUSION Stable Pool allows for improved price execution compared to the v1 Stable Pool, resulting in higher volumes and fees generation.

However, in case of a depeg between the paired assets, the pool could become entirely imbalanced and consist of only one asset, making it impossible to rebalance the pool. This extreme situation would not occur with the V1 stable AMM.

Fee structure : Dynamic

Gamma - Correlated

The Correlated strategy distributes the liquidity in a tight range around an evolutive price peg between a yield accruing token and its underlying based asset. This pool not only addresses the Liquid Staked Derivatives (LSD) tokens that are accruing the staking rewards over time (e.g $ETH-$frxETH or $BNB-$ankrBNB), but also any other tokens integrated into a yield-generating market.

Fee structure : Dynamic

DefiEdge

DefiEdge strategies concentrate the liquidity close to the market price of the pair, through multiple ranges. The level of concentration of the liquidity deployed by DefiEdge strategies are in between the Wide and Narrow strategies from Gamma, offering an alternative risk/reward LP opportunity.

The strategy can be adjusted directly with the core, on demand.

Fee structure : Dynamic

ICHI

ICHI provides single token deposit strategies. LPs deposit a single token that the strategy pairs with another token to generate yield through automated liquidity management operations on THENA. The strategy actively accumulates the deposited token and generate trading fees. The deposited token always keep a [65%-95%] weight within the pair, providing a directional edge to LPs.

ICHI offers a wide range of custom strategies to help THENA's partners achieving liquidity goals such as treasury management, sell side incentives amd tailored on-chain market making operations.

Fee structure : Dynamic

Classic AMM

UniV2-style variable pool designed for uncorrelated pairs of assets such as $BNB-$USDC.

v1 Variable Pool comprise two tokens that users can swap, with the exchange rate determined by each token's relative supply and demand through the constant product formula. These pools are ideal for trading more volatile tokens, as they can rapidly adapt to fluctuating market conditions.

Fee structure : 0.2%

Stable AMM

Curve style of stable pool for correlated or loosely pegged pair of assets, such as $FRAX-$BUSD or $USDT-$USDC.

v1 Stable Pool is a type of liquidity pool that is designed specifically for assets that are expected to consistently trade at near parity, such as stablecoins or synthetics. Unlike traditional AMMs, which use a constant product formula to calculate prices, sAMMs use a constant sum formula. This helps to reduce slippage and price impact, making sAMMs particularly well-suited for stable assets.

Fee structure : 0.01%

Manual Concentrated Liquidity AMM

The manual range strategy allows LPs to set their preferred price range and adjust it in a highly customisable way. Custom price ranges set-up is best suited for skilled investors confident in their market making skills.

The Manual Range Pool allows for Market Makers individuals or organisations to build on top of THENA and earn 97% of the swap fees generated by their operations. 3% of the swap fees are retained and further deposited as voting incentives on FUSION gauges as a revenue share to veTHE holders.

Manual Range Pools are not included in the gauges system, which means they are not eligible for earning $THE farming rewards.

Fee structure : Dynamic