Pool

The Pool service allows users to provide liquidity to trading pairs on WEMIX.Fi and earn fees from swaps executed through those pools. WEMIX.Fi uses a Concentrated Liquidity Automated Market Maker (CLAMM) model, which enables liquidity providers to concentrate capital within specific deposit ranges rather than distributing it across the entire range.

Key Concepts:

• Concentrated Range: Upper and lower exchange rate boundaries where liquidity is active

• Capital Efficiency: Concentrated positions earn more fees per exchange than full-range positions

• Fee Tiers: Different pools charge different trading fees based on volatility and liquidity needs

• Active Position: A position currently earning fees because exchange rate is within the deposit range

• Out-of-Range Position: A position not earning fees because exchange rate has moved outside the range

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Understanding Concentrated Liquidity

Unlike traditional AMMs where liquidity is spread evenly across all possible exchange rates, CLAMM allows liquidity to be deposited within a custom exchange rate range. This concentration creates greater capital efficiency — liquidity providers earn more fees per unit of capital when the exchange rate remains within the selected range.

Active vs. Inactive Positions

Positions only earn fees when the current exchange rate falls within the specified range. If the exchange rate moves outside this range, the position becomes inactive and stops generating fees. The position will not resume earning until the exchange rate returns to the selected range or the position is rebalanced.

CLAMM vs. Traditional AMM

Feature	CLAMM (Concentrated)	Traditional AMM (Full Range)
Capital Efficiency	High — liquidity concentrated in specific range	Low — liquidity spread across all prices
Fee Earnings	Higher per unit of capital (when in-range)	Lower per unit of capital
Management Required	Active — requires rebalancing when out-of-range	Passive — no rebalancing needed
Impermanent Loss Risk	Amplified within selected range	Standard IL across all price movements
Best For	Active liquidity providers, stable pairs	Passive liquidity providers, volatile pairs

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Fee Structure:

Two types of fees apply to liquidity provision:

• Trading Fee: Trading fees are charged on each swap executed through the pool. These fees are split between liquidity providers and the protocol:

• Fee Tier Selection: Liquidity providers earn their portion of trading fees continuously. Fees accumulate in the position and can be collected at any time without closing the position.

  • 0.01%: Stablecoin pairs with minimal price volatility

  • 0.05%: Standard pairs with low to moderate volatility(e.g., WEMIX/stWEMIX)

  • 0.25%: Moderate volatility pairs

  • 1.00%: High volatility or low liquidity pairs

Pool Fee Tier	Total Trading Fee	Liquidity Providers	Protocol Fees
0.01%	0.01%	0.008%	0.002%
0.05%	0.05%	0.04%	0.01%
0.25%	0.25%	0.2%	0.05%
1.00%	1.00%	0.8%	0.2%

• Gas Fee (Network Fee): Paid in WEMIX for all liquidity transactions including deposits, withdrawals, deposit range adjustments, and reward claims. Gas fees on WEMIX3.0 are significantly lower than other networks.

When providing liquidity, both tokens in the pair must be deposited in proportion to the current exchange rate and selected range.