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What happens to my assets while they are supplied to SODAX Pool?

How your SODA and xSODA behave while supplied to the pool.

Written by John
Updated this week

When you supply SODA and xSODA to SODAX Pool, your assets join the unified SODA/xSODA liquidity pool within the SODAX Hub, regardless of which network you supply them from.

๐Ÿง  Your assets are actively working within the SODAX system. The SODA/xSODA pool is used to facilitate SODA trades against other assets and to process xSODA unstaking across the system.


How Your Position Changes Over Time

Because SODAX Pool uses concentrated liquidity, the ratio of SODA to xSODA in your position will shift as the trading price of xSODA changes relative to SODA within your selected range.

  • Within Your Range: While the trading price remains within your selected price range, your position will hold a mix of both SODA and xSODA. The exact ratio adjusts continuously as the price moves.

  • Outside Your Range: If the market price moves beyond the boundaries of your selected range, your liquidity will no longer be active. At this point, your position will effectively hold only one of the two assets. For example, if the price of SODA rises (relative to xSODA), above the upper bound of your range, your position would be held entirely as xSODA.

โš ๏ธ If your position goes out of range, you stop earning rewards. Your liquidity remains safe but will not be active until you adjust your position. For more on this process, see "Why do I need to select a range for my liquidity?"


Withdrawing Your Assets

When you withdraw your liquidity from the pool, you will receive your assets at the current ratio held in your position. This may differ from the 50/50 split you originally supplied, depending on how the trading price has moved during the time your liquidity was active.

For a guide on how to withdraw, see "How do I withdraw SODA liquidity on SODAX Pool?"


Need Help?

If you have any further questions about your supplied assets or need assistance, visit our Support Center for more articles and resources, or contact our support team via the button in the bottom right.

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