Single Asset Pools | Provide Liquidity | Earn Rewards
Limit the risks of impermanent loss whilst providing liquidity
Overview
Each Liquidity Pool of a Chain Path requires liquidity to facilitate a swap. Adding liquidity on one side of a Chain Path creates a reference of the amount on the other side. Both liquidity pools always keep track of the amount of liquidity to their respective counterparts.
Similar to a liquidity pool on an AMM, adding liquidity on Altitude emits a respective LP Token that can be used to reclaim liquidity or to participate in Altitude staking.
Note: LP Tokens can be redeemed from either liquidity pools, but redeeming tokens across chain is only permitted in case of insufficient liquidity on the executing chain. This ensures that the user will ALWAYS be able to reclaim their liquidity.
Example:
Add ETH liquidity (on the Polygon network), stake your LP Tokens and earn ALTD in rewards.
How to Add Liquidity
Go to altitudedefi.com/pool
Connect your wallet
Select a liquidity pool, and add liquidity to any of the assets supported by Altitude (i.e., ETH, MATIC,etc)
Confirm allowance (should only occur once per chain per token)
After providing liquidity, receive LP tokens which can then be staked to farm ALTD
The LP tokens represent your proportional share of the assets in any given pool; you can redeem your funds at any point.
Farm and Earn ALTD with LP Tokens
Farm ALTD by staking your LP tokens of your favorite blue chip assets
1) Users with Altitude LP tokens are able to farm ALTD after selecting a farm. Just navigate to https://altitudedefi.com/farm
2) Select the farm that you would like to participate in
3) After selecting the farm, you can go ahead and add your LP tokens
4) In exchange for adding LP tokens to a farm, which was covered previously, users will receive ALTD rewards. These ALTD rewards can then be staked to earn gALTD, the protocol's governance token.
The HUB
Instead of opting for unified liquidity pools, Altitude utilizes separate liquidity pools for each chain path, rendering each chain path independent of the others. An approach like this makes the entire system resilient to chain outages (as only one liquidity pool pair would be affected, instead of an entire unified liquidity pool system).
This comes with the drawback of dispersed liquidity between all chain paths. To mitigate that, Altitude utilizes a HUB to which each chain path is connected with one liquidity pool. To bridge between two chains, of which neither is the HUB, users can always route through the HUB to reach their desired destination chain.
Example: Connecting chains A, B, C, D, E for a single asset. Each cell represents a single liquidity pool. Note that adding a new chain to the HUB increases the amount of liquidity pools by +2, compared to +1 with unified liquidity pools and an exponential increase of n*(n-1) with fractionalized liquidity pools.
HUB: one liquidity pool for each chain path connected with the HUB chain (8).
A -> B | B -> A |
A -> C | C -> A |
A -> D | D -> A |
A -> E | E -> A |
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