Single Token Liquidity

A new way of supplying liquidity

Single Token Liquidity Supply Schema

For all full range AMMs, liquidity needs to be supplied in token pairs, which does not provide a great degree of flexibility to liquidity providers. Single token liquidity supply is a homemade feature from BubbleFi Labs which reduces the friction in onboarding new liquidity providers to existing pools.

Single token liquidity supply is carried out using a dust pool, which can be created in a permissionless manner.

Each dust pool supports two tokens, and is hooked to the BubbleFi bubble pool with the same token combination. Liquidity providers can supply amounts of a single token of either type to the dust pool. The tokens coming in from different liquidity providers are paired up and added to the corresponding bubble pools. The received LP tokens are distributed among the single token liquidity providers as per their contributions.

With this, liquidity providers can enter positions in BubbleFi bubble pools in a communal manner.