Liquidity Pool

The engine behind seamless swaps and decentralized trading on Esher

What is a Liquidity Pool?

A liquidity pool is a smart contract that holds two tokens in balance, allowing users to trade between them without relying on an order book or centralized exchange. Instead of matching buyers and sellers, trades are executed instantly against the pool — with pricing handled by an algorithm.

On the Esher blockchain, liquidity pools power the native DEX (Decentralized Exchange). They enable trustless swaps between tokens like ESH, stablecoins (USDT, IDR), and User Issued Assets (UIAs).

How Does It Work?

Liquidity pools follow an automated market maker (AMM) model. Users deposit an equal value of two tokens into a pool (e.g., 50% ESH and 50% USDT), and the smart contract maintains balance using a constant product formula: x × y = k

Every trade slightly adjusts the token ratio and updates the price accordingly. The deeper the liquidity, the more stable the price during large swaps.

Why It Matters

Liquidity pools remove the need for centralized market makers or exchanges. They allow anyone to:

  1. Swap tokens instantly
  2. Launch a new market for their asset
  3. Earn rewards by providing liquidity
  4. Empower decentralized price discovery

Who Provides the Liquidity?

Anyone. Liquidity providers (LPs) can add token pairs to a pool and earn a share of the trading fees. Some pools may also distribute ESH or other incentives to boost early adoption and support emerging UIAs.

Are Liquidity Pools Safe?

Pools are protected by Esher’s smart contract logic and security practices. However, risks such as impermanent loss or volatile token pairing still apply. Users are encouraged to understand the dynamics before depositing assets.

What Can Be Traded?

Esher supports a wide range of token pairs within its liquidity pools, allowing seamless swaps between ESH, popular stablecoins like USDT, USDC, and IDR, as well as User Issued Assets (UIAs) created directly on the network. Users can trade between native tokens and stablecoins, between UIAs and ESH, or even pair two UIAs to form custom markets. This flexibility opens up a decentralized, low-cost trading ecosystem accessible to both project creators and everyday users.

Explore Available Pools

Browse all active liquidity pools on the Esher DEX, view real-time stats, and start earning by providing liquidity.

View All Pools →