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Puzzle offers the opportunity to invest in liquidity pools known as Mega Pools. A liquidity pool is a collection of funds that are locked in a smart contract and used for various decentralized functions such as trading and lending.
These pools are called Mega Pools because they can contain up to 10 tokens, as opposed to the standard AMM pools which only contain 2 tokens. You have the option to add or withdraw liquidity from a pool, as well as create your own custom pool.
Adding liquidity to a pool
You can add liquidity to a pool by selecting one from the pool list page and clicking on the “DEPOSIT” button. You can choose to add all tokens in the pool by buying them with the correct weight, or you can simply add one token (it's important to note that adding only one token can lead to inefficiencies in low liquidity pools).
By adding liquidity, you will receive a liquidity token that is automatically staked. Staked LP tokens receive a cut (50%) of the pool trading fee, while Pool creator gets 10% and $PUZZLE stakers get the remaining 40%.
Withdrawing liquidity from a pool
You have the flexibility to withdraw your liquidity from the pool whenever you want. Upon withdrawal, you will receive all the tokens that were added to the pool.
Create a custom Mega Pool
With Puzzle, you have the ability to create and customize your own Mega Pool. To get started, you must first possess an NFT Artefact from the Puzzle Pool collection, which can be purchased on the NFT market or minted directly from the smart contract.
Once you have your Artefact, head over to the pool list page and click “Create a Pool.” From there, you can select up to 10 tokens for the pool, set their weights, commission rate (between 0.5% and 5%), and add the related liquidity.
Once your pool is created, you will earn profits from every trade made within it. The commission is split with 10% going to the pool owner, 50% to liquidity providers, and 40% as a protocol fee used to either burn or buy back $PUZZLE.
As the creator of a Custom Mega Pool, you can choose to boost the pool by adding a certain amount of one of the tokens in the pool. This amount will be distributed to the liquidity providers for the period that you specify.