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Pools and rewards

First let's read about a little bit of history​

At first, FxDAO envisioned having its own pools and rewarding users who provide liquidity there, but seeing how the Soroban ecosystem is evolving (AQUA, Soroswap, Phoenix, Blend, etc) we decided that instead of having our pools, the protocol will reward those who are providing liquidity on others' protocols, this way we don't fragment liquidity and instead help the ecosystem on aggregate.

So this means that our pools in general are now deprecated, it's possible that at some point they will be deployed but for now the protocol will focus on rewarding others' pools.

How are rewards distributed?​

The distribution of the rewards is done using a locking period system, you as a liquidity provider deposit funds on a third-party pool and for this example let's use AQUA pools. Let's say you want to provide liquidity on the AQUA pool USDC/USDx, you deposit the liquidity there and then you come to our protocol and lock your LP asset (the asset the AQUA pool gives you after your deposit), in a few days you decide to unlock your asset and at that moment you will receive your share of the distribution and your AQUA LP asset back.

The distribution of the rewards is done on a daily basis (on random hours), based on the list of rewarded pools. Your share of the rewards is calculated at the moment you withdraw your locked assets.

Do I earn rewards if I provide liquidity on pools but don't lock my LP assets?​

You could still receive rewards from the protocols those pools belong to, but if you want to receive FxDAO's rewards you will need to lock the assets in our system.

Is there a minimum amount of deposit or amount of time?​

Each rewarded pool will have its own conditions, you will be able to check them on the protocol's site before you lock your assets. On a general rule, all pools will require a minimum of 7 days on locking period.

What are the risks involved?​

Besides common smart contracts risks, the main risk with locking your assets is time. During the process you won't be able to withdraw your LP assets until the unlock time is reached so plan ahead of that before locking your deposit.