> For the complete documentation index, see [llms.txt](https://docs-core.allbridge.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs-core.allbridge.io/product/how-does-allbridge-core-work/liquidity-provision.md). # Liquidity provision Allbridge Core allows users to supply stablecoins to liquidity pools on supported chains. These pools enable cross-chain transfers and earn fees from transfer activity. Liquidity is always held in smart contracts, and there are no lockups or staking requirements. ## Adding Liquidity Users can add liquidity to any available pool by depositing the supported stablecoin for that chain.\ When liquidity is added: * The pool records the deposit as a combination of real stablecoins and virtual vUsd. * The depositor receives pool tokens representing their proportional share of the pool. * There are no restrictions on how long liquidity must remain in the pool. Each deposit immediately starts contributing to processing future transfers on that chain. Important: always check how many LP points you're going to receive for the liquidity provided. On pools out of balance LP point amount can be lower than the balance you deposit. You can deposit to liquidity pools here: . ## Withdrawing Liquidity Liquidity can be withdrawn at any time. Unlike with liquidity deposit the user will always receive 1:1 underlying stable coins to the amount of LP points sent for withdrawal. The state of the pool does not affect this amount. ## Rewards Liquidity providers earn a share of the fees generated by pool-based transfers. Specifically: * LPs receive 80% of the 0.3% pool fee (0.15% on the sending side and 0.15% on the receiving side). * Rewards accumulate continuously as transfers occur. * Accumulated rewards are separate from the main liquidity and require claiming and re-depositing to be added to the pool. Or you can use [Allbridge Core Yield](/product/allbridge-core-yield.md) feature (not yet available for all chains) which takes care of redepositing accumulated rewards automatically. * Yields vary depending on transfer volume and the size of the pool. The interface displays annualized APY estimates based on recent activity (7-day or 30-day lookback) to help providers evaluate expected performance. ## Risks and Considerations Liquidity provision in Allbridge Core does not involve impermanent loss, and withdrawal amounts always match the LP’s share of the pool. However, rewards depend on actual transfer volume, which may vary over time. Periods of lower activity will result in reduced fee earnings, while activity spikes can increase returns. Conditions on individual blockchains—such as gas costs, congestion, or changes in available routes—may also affect the overall experience of adding or removing liquidity. Users should regularly review pool statistics and historical performance to understand how these factors may influence their returns. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs-core.allbridge.io/product/how-does-allbridge-core-work/liquidity-provision.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.