Sundaeswap liquidity pools

Farming eligibility and claim conditions

Farming adds a separate incentive program to a liquidity position. The deposit must qualify under that program before its rewards belong in a return comparison. Ordinary LP fee participation and farming eligibility are separate: owning LP tokens doesn't by itself establish an entitlement to token emissions.

SundaeSwap Labs' Yield Farming V2 proposal, published May 31, 2023, specified that earning rewards required holding LP tokens from eligible pools in the Locking Contract. Owners could reclaim locked assets at any time and claim emitted rewards without a 30-day locking requirement. Earned rewards had to be claimed within six months. During a vote to exclude a token or pool, the affected rewards would accrue but remain unclaimable until the vote concluded. A failed exclusion vote would make them claimable; a successful vote would return the affected emissions to the treasury. The proposal's author reported its on-chain approval on June 21, 2023.

Those conditions describe that program design. A position's actual farming terms determine its eligibility, claim window and restrictions. Farming fits an owner prepared to track those obligations and the value of the reward asset. Without a qualifying incentive, the liquidity case must stand on pool fees and asset exposure alone.

Price ranges and asset baskets

Sundae Labs' July 30, 2026 announcement, Introducing Sundae v4, described a phased feature rollout. Its specialized pool designs change which responsibilities accompany a deposit; they shouldn't be treated as interchangeable with a conventional two-asset constant-product pool.

• Concentrated liquidity allocates capital to a chosen price range. The design earns no trading fees for that position while the market is outside its range. It fits an owner willing to monitor that allocation. A conventional constant-product pool avoids choosing a bounded range, while retaining changing balances and impermanent-loss exposure.
• Multi-asset pools combine several assets and their trading activity. Shared volume may help fees offset impermanent loss, but the depositor takes exposure to every asset in the basket. A two-asset pool is the alternative when the intended exposure is limited to a pair.
• Linear Swaps are designed for baskets of accepted stablecoins exchanged at a 1:1 ratio plus a predictable fee. Their usefulness depends on acceptance of the deposited stablecoins and sufficient reserves of the asset being requested. One-sided demand can exhaust a reserve and prevent the pool from serving affected trades. The announced design includes bounties to encourage replenishment and allows unmet flow to move to other pool types.

A specialized pool fits only when its actual implementation and configuration match the intended use. Fixed-ratio pricing, a selected range or a wider asset basket each changes the liquidity decision; none supplies a universal return guarantee.

Liquidity provision is a poor fit when success requires recovering the exact starting quantities of ADA and SUNDAE, receiving assured income or avoiding exposure to a pool's other assets. Swap fees and farming rewards can be outweighed by changes in the assets' relative prices and by transaction costs.

Impermanent loss describes the shortfall a liquidity position can develop relative to holding the same starting assets outside the pool as their relative prices change. That comparison differs from measuring an absolute gain or loss in ADA or another valuation unit. A useful assessment keeps the holding benchmark and liquidity outcome in the same unit at the same time.

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Holding the original assets preserves their quantities without pool rebalancing, although their market values can still change. If the task is simply to exchange one asset for another, a swap addresses that task without creating an ongoing LP position.