Xspswap Xspswap liquidity pools
XSwap Protocol pools support XRC20 token swaps on the XDC Network. Pool depth and trade size affect the quoted exchange rate and price impact. Very low liquidity for the selected assets can make a swap expensive or impossible.
Trade Size and Pool Depth
Price impact describes the effect that a trade has on the pool's exchange rate. A thin pool can be sensitive to the amount being exchanged, so a quote for a small swap does not establish the rate for a larger one. Review the quote and price impact for the intended trade size.
A pool can exist with insufficient liquidity for a particular order. In V3, a token pair can have separate pools at different fee tiers. Providers choose a price range for each NFT liquidity position, with a full-range option available. When the market price is outside that range, the position does not supply trading liquidity or earn trading fees.
V2 Initial Rates and Later Contributions
In the deprecated V2 ecosystem, creating a new pair includes choosing its starting exchange rate. XSwap Protocol's liquidity demonstration shows a swap changing that rate and a subsequent liquidity contribution using the updated rate. The proportions used for the first deposit can therefore differ from those needed for a later contribution.
A Hypothetical Contribution at a Changed Rate
All amounts and rates in this V2 pool example are hypothetical. A provider plans to contribute 83 XDC at an earlier pool rate of 1,240 units of the paired XRC20 token per XDC. The corresponding paired-token amount is 83 × 1,240 = 102,920 units.
If the pool rate remains unchanged, the planned amounts still match it. If intervening swaps move the current rate to 1,175 token units per XDC, the same 83 XDC instead corresponds to 83 × 1,175 = 97,525 paired-token units.
The changed-rate case needs 5,395 fewer paired-token units than the original plan. The provider must revise that token amount before supplying at the changed rate; the unchanged-rate case can retain the original proportions. A matching calculation or wallet authorization alone does not confirm that liquidity has been added. Check that the V2 supply transaction succeeded and that the corresponding LP tokens were received.
V2 Pool Shares and Fee Income
XSwap Protocol's ecosystem listing separates V3 products from a V2 ecosystem labeled deprecated. In the V2 model, liquidity pool (LP) tokens represent a provider's share of a pair. A portion of the trading fees paid on swaps in that pair is added to its pool, with providers participating proportionally.
LP-token farming is a separate action in the V2 guide: providers lock their LP tokens in a farming contract. A liquidity contribution alone does not establish participation in that farm. These V2 instructions do not establish the position mechanics or rewards of an individual V3 pool.
The V2 guide also identifies impermanent loss as a risk for liquidity providers: when the deposited tokens' price ratio changes, the pool position can be worth less than holding those tokens outside the pool. It describes farming incentives as a way to offset that risk, but those incentives do not guarantee that a provider's losses will be covered.
