Create Pool

Permissionless Pools

Definition Permissionless pools are user-deployed liquidity pools that do not require any centralized approval. Liquidity providers (LPs) supply a trading pair (e.g., ETH/USDC), and the pool automatically facilitates swaps between those tokens.

Key Features

• Fully decentralized and self-managed: Anyone can create a pool without gatekeepers.

• Requires technical knowledge to deploy and configure properly.

• Maximum flexibility for advanced users who want custom configurations.

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V2 vs. V3 at a Glance

	v2	v3
Liquidity Distribution	Spread across the entire price range (0 to ∞)	Concentrated liquidity within user-defined price ranges
LP Token Type	Fungible (ERC-20)	Non-fungible (NFT), each position has custom parameters
Capital Efficiency	Lower; a lot of liquidity sits unused	Potentially much higher; LPs can earn more with less capital at risk
Complexity	Relatively simple, easy to set up	More advanced; LPs must actively manage or specify price ranges to keep earning fees
Fee Tiers	Single default (0.30%)	Multiple tiers (0.05%, 0.30%, 1.00%), letting LPs balance risk vs. reward
Best For	Users wanting simplicity or wide price coverage	Users who want to optimize for greater returns, can handle more active management

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How It Works in V2

• Single Price Curve: Liquidity is distributed across all prices between 0 and ∞.

• Fungible LP Tokens: When you deposit assets, you receive ERC-20 tokens representing your share in the pool.

• Simple Setup: Less fine-tuning is required. Even so, you’ll need to deposit proportional amounts of both tokens.

How It Works in V3

• Concentrated Liquidity: Choose the exact price range to provide most of your liquidity, improving fee potential.

• Non-Fungible Positions: Each position is unique and represented as an NFT instead of a fungible LP token.

• Fee Tiers: You pick a fee tier that suits your pair’s volatility (e.g., 0.05% for correlated assets, 0.30% for popular pairs like ETH/USDC, 1.00% for exotic assets).

• Active Management: If the price moves outside your specified range, your liquidity is no longer active until you rebalance.

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Which Version Should You Use?

• Choose v2 if you want a straightforward, fully permissionless pool where you don’t have to manage price ranges.

• Choose v3 if you want greater control over how your capital is allocated, potentially higher returns, and you’re comfortable actively managing or using tools that automate rebalancing.