Invest - Provide Liquidity

Starfish users can add liquidity to public pools and earn a fraction of any fees it generates.

There are 3 ways to provide liquidity / invest in Starfish pools:

  1. Single Token Investment

  2. Match the Pool Makeup

  3. Unmatched Pool Makeup

Single Token Investment

Investing one-sided liquidity means that you can provide one token to a multi-token pool or two token pool. Starfish will automatically swap your provided token to the underlying assets as if you would swap them and then provide liquidity. Note that therefore, you will experience price impact, which shows how much of your investment value is affected by swap fees. If the amount is large, it is advisable to invest in more than one token, or swap tokens yourself.

Advantage of Single Token Investment

  • Enabling single-token exposure when providing liquidity, instead of requiring exposure to additional reserve assets.

  • Reduces friction for token communities and allows both teams and holders to build and benefit from deeper, permissionless liquidity.

Let's take the USDT/USDC/BUSD stablecoin pool as an example, and we only invest USDT in this pool.

  1. Click on the pool you wish to provide liquidity into, and click the Invest button under the "My Investment" panel to start investing.

2. Enter the the amount of USDT you wish to invest.

3. Click Preview Invest to final confirm your Invest amount. If you are okay with the amount and price impact, click Confirm Invest to continue with the transaction.

4. You can click the Approve, allow USDT to be used in this transaction and Confirm it in MetaMask.

5. After the transaction went through, you can see your new investment balance under this pool!

Provide Liquidity with Matched the Pool Makeup

Providing liquidity to a pool with all underlying assets is very similar to providing liquidity with only one asset. The key difference is that you will provide liquidity for all assets and therefore have a very low to no price impact. There is only no price impact when your tokens exactly match the pool ratios.

In the following example, we invest 100 USDT, 100 USDC, 100 wBUSD in Stable 3 Pool.

  1. Enter the amount of one of the tokens you wish to invest, say 100 USDT, then turn on the Optimize Investment button to auto update amount of remaining tokens needed for investment.

2. After turning on the Optimize Investment button, you can see that other underlying tokens needed are displayed according to their weight and current spot price of this pool. Price impact will be updated (closer to 0%) as the invested amount is matching the pool weight.

3. Click Preview Invest to final confirm your Invest amount. If you are okay with the amount and price impact, click Confirm Invest to continue with the transaction.

4. Since you're investing 3 tokens for this pool, you'll have to Approve on MetaMask for 3 tokens before clicking Confirm to go through the transaction.

Provide Liquidity with Unmatched Pool Makeup

Unlike providing liquidity in Uniswap, and Curve, you can invest tokens that do not match with the pool weight setup percentage.

Take a look at this example, we invest 100 USDT, 50 USDC, 50 wBUSD in in Stable 3 Pool. The pool weight of this pool is 33.3% for each token, but according to the investment ratio, it is disproportionate to the pool weight.

You can continue to provide liquidity in this disproportionate ratio, by clicking Preview Invest, and confirm your transaction by clicking Confirm Invest and Confirm in MetaMask.

After liquidity is added, you'll see that your investment balance of underlying tokens is under proportionate amount with the price impact taken into account.

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