LPs FAQ

Where is the yield coming from?

The yield on TONCO pools comes from two main sources:

1. Swap Fees: When users swap tokens within the pool, a fee is collected and distributed to liquidity providers.

2. Farming Rewards: If farming is active, additional rewards are provided to liquidity providers for their contribution.

These combined sources create the total yield displayed for the pool.

Where can I find my position?

You can find your position on the “Pool” page.

Can I provide liquidity over the whole range?

Yes, you can. By providing liquidity across the full range, you will get a significantly lower rate of return than with a similar position with a narrower price range. Conversely, the potential of falling out of range will be lower in this case.

You can provide liquidity across the full range by clicking the Full Range button.

Can I withdraw my liquidity at any time?

Yes, you can burn LP NFT for a proportional share of the pool at any time.

How do I choose a price range for providing liquidity?

Choose based on market outlook and risk tolerance—narrower ranges around current prices yield higher fees but require more adjustments; wider ranges are more passive but may earn fewer fees.

What if my position is out of range?

If the price of the assets you're providing liquidity for goes outside of the range you've specified, then your position will become focused on one asset or the other. You won't earn any trading fees until the price returns to within your specified range.

Where are my LP tokens?

For CLMM pools you won't receive LP tokens per se. Instead, you'll get a position NFT that represents your position in the pool (liquidity and price range). If it is burned or otherwise lost, the associated liquidity cannot be withdrawn or retrieved. It is possible to send or trade a pool position NFTs. However, if sold any associated liquidity is also sold and will no longer be held by the original owner.