Liquidity Provisioning (Earn)
Interest flows directly into the reserve — meaning LPs benefit automatically without active management.
Streaming Collateral (Liquidations)
If a borrower becomes insolvent:
Their debt is written off
Their collateral is streamed into the pool reserves over time
This avoids reserve volatility and protects LPs from dump risk
Risk Profile
Impermanent Loss
Applies during volatile swaps, similar to AMMs
Offset by borrow interest
Credit Risk
Borrowers may default
EMA pricing + isolated pools + CF caps
Liquidity Lock
Excessive utilization can slow LP withdrawals
Dynamic interest rate incentivizes balance
LP Withdrawals
When you remove liquidity:
You receive back your pro-rata share of Token0 and Token1
Withdrawals check solvency: pool must remain collateralized
If utilization is too high, part of your liquidity may be temporarily “locked” (as borrowed funds)
Design Rationale
Unified pool = better capital efficiency
Streamed liquidations = smoother LP experience
Interest model = rewards LPs without volatility
Summary
LPs in Omnipair earn like both Uniswap LPs and Aave lenders — all in one position. While risks are present, they’re transparent and isolated per pair, with protective design choices to keep capital safe and productive.
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