Proportional Liquidity

Deposits or withdrawals from the pool must be done in the same proportion to the current reserves of the pool. This is enforced by the contract invariant. For example, if the pool contains 100 USDC and 200 NZDS, then you may only deposit in a 1:2 ratio of USDC and NZDS, such as 1 USDC and 2 NZDS. A pool is perfectly balanced when there is a 50:50 split of each asset in reserves, using the oracle rate for conversion.

LP Tokens

When making a deposit, you are adding two assets to the pools reserves, and in return receiving newly minted LP tokens representing your share of the pool reserves. When you withdraw liquidity, you are sending your LP token back to the pool (burned), and receiving that share of the current reserves (e.g. NZDS & USDC, but wont be exactly the same ratio or amount).

You do not have a claim to the tokens you put in (?) you have a claim to a share of the pool reserves. e.g. you may deposit 100 USDC and 150 NZDS, but when it comes to withdraw you are not guaranteed 100 USDC and 150 NZDS. You could get 80 USDC and 175 NZDS or 101 USDC and 151 NZDS.

Deposit & Withdraw