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Poolside is a decentralized AMM protocol optimized for liquid staking and yield-bearing tokens. In other AMMs, token rebases will affect the price of tokens in a pool. This results in mispriced assets and unfair losses for liquidity providers (LPs). Poolside implements reservoirs, a novel mechanism, that solves this problem.
Poolside maximizes capital efficiency by protecting liquidity during rebase and value accrual events. For example, yield from liquid staking or lending protocols is held to the side for LPs to add to later. This is important for three reasons:
  • Yield accrues to LPs instead of being arbitraged away
  • Liquidity doesn't suffer from unnecessary divergence loss
  • Pools remain accurately priced, maximizing swap fee potential
Poolside is an innovative AMM that represents a paradigm shift for DeFi. The protocol is designed to facilitate the most liquid markets for on-chain yield. Poolside unlocks opportunities for DeFi to trade the most productive versions of assets. The initial version of Poolside focuses on supporting native rebasing assets like Lido's stETH. Subsequent versions will expand support for a variety of assets:
  • Liquid Staking (Rocketpool’s rETH)
  • Appreciating Collateral Tokens (Aave aTokens, Compound cTokens)
  • Reward-bearing Tokens (FOXy, OHM)
  • Interest-bearing Stablecoins & RWAs (eUSD, ECOx)
  • Elastic Commodities (AMPL)
Last modified 3mo ago