Liquidity pools

To ensure smooth functioning of the protocol, each Watt asset has a dedicated liquidity pool on Raydium. The simultaneous existence of both an original token liquidity pool and a Watt asset liquidity pool creates opportunities for arbitraging price differences between them. This arbitrage activity serves as one of the primary yield drivers for Watt asset holders and liquidity providers.

The protocol enables users to create Raydium CPMM pools using liquid-staked Watt tokens, allowing them to earn both Raydium APR and Watt APR.

Watt liquidity pools:

• are deployed on Raydium CPMM.

• require a minimum level of liquidity to be visible and selectable within the app's user interface.

• earn a share of the protocol's fees, which must be actively claimed by the liquidity providers.

• can help offset impermanent loss by providing yield from both Raydium and Watt sources.