Liquidity Provider Workflow

This chart illustrates the circular flow of how liquidity providers interact with the AMM pool, showing both the deposit and redemption processes.

Liquidity Providing Flow

Step 1: Initial Deposit

The Liquidity Provider deposits underlying tokens into the FT/XT AMM pool.

• Example: Deposit USDC

• This provides the initial liquidity for the pool to function

Step 2: Receive LP Tokens

After depositing, the AMM pool automatically:

• Mint LP-FT and LP-XT tokens

• Transfer these tokens back to the Liquidity Provider

• These tokens represent your share in the pool

Step 3: Redemption Options

When you want to withdraw, you have two options for redeeming your LP tokens:

Option 3.a: Redeem Underlying Tokens

• Deposit your LP-FT/LP-XT tokens

• Receive back your underlying tokens (e.g., USDC)

Option 3.b: Redeem FT and XT

• Deposit your LP-FT/LP-XT tokens

• Receive FT and XT tokens in return