Liquidity pools

A basket can have an external liquidity pool containing its shares and a quote token, such as WETH or a configured settlement token. The vault continues to hold the constituent backing. The pool holds transferable claims on that backing in the form of shares.

Pool swaps and minting

Route	What the buyer receives	Effect on the vault	Principal execution dependency
Mint through underlying tokens	Newly issued shares	Supply and backing increase	Constituent routes
Redeem through underlying tokens	Proceeds from burned shares	Supply and active backing decrease	Constituent claims and routes
Share-pool swap	Existing shares or their sale proceeds	Supply and reserves stay unchanged	Share-pool liquidity

Pool swaps pay the venue’s trading fees and do not trigger the vault’s issuance fee. Pool price can differ from the value of redeemable backing. Arbitrage depends on traders and executable routes; the protocol does not automatically maintain a peg.

Where supported by the configured application, ETH trading compares underlying mint/redeem with pool routes. The configured settlement token uses pool swaps, either directly against basket shares or through WETH. It does not use the basket’s mint/redeem route in the current implementation.

Supply two assets

To add liquidity, a provider supplies existing basket shares and a separate ETH budget. The helper wraps ETH for a WETH pair or converts it into the selected quote token. A conversion route needs its own liquidity.

For a new launch, backing and pool funding are separate budgets. As an illustration, assume 10 ETH funds one share with no issuance fee or swap costs. Contributing 0.5 of that share alongside another 5 ETH would seed a pool near 10 ETH per share. The combined contribution is 15 ETH plus gas; the provider retains 0.5 shares and receives the position NFT. Actual quantities follow the transaction quote.

Basket creation and liquidity funding are separate operations, with a share approval when required. If pool funding fails, a previously completed basket creation remains valid.

The position belongs to its receiver

The helper creates a full-range V3 position and mints its NFT directly to the selected receiver. Any holder can contribute their own shares and ETH. Being the basket creator gives no authority over another provider’s position.

The NFT is not locked. Its owner can remove liquidity through the venue’s position manager. Pool depth can change, and a launch does not promise permanent liquidity. The current app does not provide its own position-withdrawal or fee-collection interface.

Unused shares return to the payer. Unused WETH is unwrapped and returned as ETH; unused other quote tokens return in that token.

Limits and existing pools

The funding transaction includes token minimums, a minimum position-liquidity amount, pool-price bounds, and a deadline. It verifies the pool’s factory, tokens and fee tier, and the receiver’s ownership of the resulting NFT. A failed check reverts the liquidity transaction.

Anyone can initialize a pool directly through the external venue. If an existing pool falls outside the submitted price bounds, funding through the helper fails. These bounds do not prevent outsiders from creating or trading a pool.

The helper has no authority to mint basket shares, burn them, withdraw backing, or rebalance. Adding liquidity therefore leaves share accounting unchanged.

Compare executable quotes

Different pair and fee-tier combinations identify separate pools. The application evaluates a bounded set of supported paths and executes one selected path; it does not split an order across basket pools.

Review actual spend, expected output, minimum output, venue fees, and gas. An underlying mint can spend less than the entered ETH budget; an exact-input pool swap uses its quoted input. A visible pool or external trading link alone does not establish that the requested amount can trade.