# 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: <https://core.allbridge.io/pools>.

## 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Liquidity can be withdrawn at any time.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.


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