What is a Liquidity Pool?

Add liquidity to select markets and earn on the transaction fees that come in via the Liquidity Pools (LP).

We built MYKOBO and the EURC on the Stellar Blockchain Network. Within this network, they have created what is called a 'Liquidity Pool' which is a market pair of two kinds of crypto coins. It functions automatically and hence it is called an AMM (Automatic Market Maker).

Because of this structure, market participants can deposit into the liquidity pool and earn fees for supplying liquidity on the crypto coin pair. Pairs that are supported by MYKOBO in our app are:

1. XLM/EURC
   
2. EURC/USDC (coming soon)
   
3. AQUA/EURC (coming soon)

Here is a snapshot on a given day of the XLM/EURC pair as seen from the StellarX overview of the EURC/USDC liquidity pool.

Within the app, it is possible to support the liquidity of the network by adding funds to the crypto pair. Follow the next steps for depositing and also withdrawing from the liquidity pools.

For a more detailed overview of the actual functioning of a liquidity pool, you can read more in our whitepaper on the EURC found here.

• Related Articles

• Depositing to the LP

  In the MYKOBO app, you will see in the navigation bar the following icon (a swimming pool ladder icon): This will lead you to the Liquidity Pools screen as follows. In order to add liquidity, select the 'Add Liquidity' text and you will be taken to ...

• Withdrawing from the LP

  Once again, in the MYKOBO app, you will see in the navigation bar the following icon. Once in the liquidity pool screen you want to click into the respective liquidity pool that you have deposited funds into. From there, you will see once again the ...