> For the complete documentation index, see [llms.txt](https://hakifi.gitbook.io/Hakifi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hakifi.gitbook.io/Hakifi/protocol/swap/liquidity-pools.md).

# Liquidity Pools

Hakifi offers two distinct liquidity pools to users: the **Stable Pool** and the **Volatile Pool**.

**Volatile Pools** are volatile pools of liquidity (similar to Uniswap v2) among asset classes with volatile prices following divergence. For example USDC vs MON or ETH vs MON.

**Volatile pairs** are formed by combining uncorrelated assets, and they utilize the conventional Uniswap V2 model with the standard constant product formula.

**Stable Pools** are pools of stable liquidity similar to Curve) between asset classes with low-volatility prices compared to others. For example USDT vs USDC.

> Another case is derivative assets, for example, mETH and ETH. Although ETH is a volatile asset, the trading pair between mETH and ETH should be considered a stable pool because the price of mETH does not fluctuate too much compared to ETH.

**Stable pairs** on Hakifi are designed for correlated assets and aim to maintain a 1:1 transfer ratio between them as much as possible.

#### **Earning trading fees** <a href="#earning-trading-fees-1" id="earning-trading-fees-1"></a>

Whenever someone trades on Hakifi, for each hop (swap) in each Exchange V2 liquidity pool, the trader pays a fixed 0.25% fee, **of which 0.17%** is added back to the Liquidity Pool in a form of trading fees.