Liquidity Providers
Fractit's AMM pool is seeded and maintained entirely by Liquidity Providers (LPs). There is no protocol-owned liquidity.
Who can be an LP
Any KYC-verified, whitelisted participant can become an LP by depositing equal values of DFMREIT tokens and USDC/CC into the AMM pool.
What LPs earn
LPs earn a share of the 0.25% trading fee collected on every swap that passes through the pool.
Fee earnings are distributed pro-rata to LPs according to their share of the pool at the time of each trade. There is no separate reward token — all LP returns are denominated in the pool assets and accumulated fees.
Adding liquidity
Navigate to Markets → DFMREIT → Add Liquidity
Enter the amount of USDC/CC you want to deposit
The platform calculates the equivalent DFMREIT amount required to maintain the pool ratio
Confirm — your LP position is recorded on-ledger immediately
You receive LP tokens representing your proportional share of the pool. These are used to track your share of accumulated fees and are required to withdraw.
Removing liquidity
Navigate to Portfolio → LP Positions
Select your DFMREIT/USDC pool position
Enter the amount you wish to withdraw
Confirm — DFMREIT and USDC/CC are returned to your wallet, including your share of accumulated fees
There is no lock-up period. Liquidity can be removed at any time.
Impermanent loss
As the AMM price of DFMREIT moves relative to USDC/CC, the pool automatically rebalances between the two assets to maintain the constant product. This means an LP's position changes composition over time — holding more of the asset that has fallen in relative price and less of the one that has risen.
The difference between holding LP tokens versus holding the two assets separately is called impermanent loss. It is called impermanent because if the price ratio returns to its original level, the loss disappears. However, if you remove liquidity at a different price ratio from when you entered, the loss is realised.
LP trading fees partially or fully offset impermanent loss depending on pool volume.
Risk summary
Impermanent loss
Pool rebalancing causes composition drift relative to a static hold
Smart contract risk
Canton-native contracts may contain undiscovered vulnerabilities
Liquidity risk
In low-volume conditions, fee income may not offset impermanent loss
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