> For the complete documentation index, see [llms.txt](https://docs.somnex.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.somnex.xyz/product-guides/liquidity-layer.md).

# Liquidity Layer

## Liquidity architecture

* Aggregator routing taps Somnex V2/V3, QuickSwap, Somnia Exchange, and others for best execution.
* AMM liquidity via V2 (full-range) and V3 (concentrated ranges).
* Perp liquidity (SPLP) is single-sided USDC; utilization drives borrow fees.

## Add Liquidity

Add liquidity through Earn → + Add Liquidity and choose a strategy.

<figure><img src="/files/ilIlg4jmMMLlagreFJo5" alt=""><figcaption></figcaption></figure>

## 1️⃣ Perp | Stable income pools (SPLP)

1. Select Perp Pools and deposit USDC.
2. Review projected APR (driven by trading fees).
3. Approve and Confirm.
4. Monitor utilization and APR; withdraw anytime per pool rules.

**`Perp Pools – Low risk, auto-compounding passive yield via stablecoins:`**

* Designed for low-risk, USDC in / USDC out
* Single-sided deposit. no pairs
* No Locks, deposit & withdraw any time
* Real-time yield distribution — no claims, no extra fees
* Rewards come directly from perpetual trading fees

💡 Ideal for users seeking passive income without worrying about impermanent loss.

<figure><img src="https://github.com/ashcrypto03/somnex-docs/raw/main/somnex/.gitbook/assets/image%20(3).png" alt=""><figcaption></figcaption></figure>

## 2️⃣ V3 | Concentrated Liquidity Pools

1. Choose pair & fee tier, then set a price range.
2. Add token amounts; ensure both sides match required ratio.
3. Approve and Confirm.
4. Re-range as needed to keep liquidity active.

**`V3 Pools – Concentrated Liquidity, Enhanced Capital Efficiency`**

* V3 Pools allow LPs to deploy liquidity within custom price ranges, optimizing fee capture relative to price movement.
* Selectable fee tiers (0.05%–1%) depending on pair volatility
* Custom price range via tick-based boundaries
* Capital-efficient LP provisioning

**💡 Ideal for advanced LPs who want to maximize returns through strategic price range selection and are comfortable actively managing positions.**

<figure><img src="https://github.com/ashcrypto03/somnex-docs/raw/main/somnex/.gitbook/assets/image%20(4).png" alt=""><figcaption></figcaption></figure>

## 3️⃣ V2 | Volatile Pools

1. Choose pair and deposit both tokens (50/50 by value unless specified).
2. Approve and Confirm.
3. Earn swap fees continuous

**`V2 Pools – Classic, Volatile Exposure`**

* Traditional AMM pool across Memes and native Somnia tokens
* Yield potential increases with volatility
* Easy to manage — no need to set custom ranges

**💡 Best for users comfortable with market risk and aiming for long-term gains.**

<figure><img src="https://github.com/ashcrypto03/somnex-docs/raw/main/somnex/.gitbook/assets/image.png" alt=""><figcaption></figcaption></figure>

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