Adding liquidity occurs in one asset. Let's have an example of Gas Token Index Pool (all native assets of each supported chain) with the following weights:
Asset
Weight Points
Share
BNB
1000
0,1428 %
AVAX
1000
0,1428 %
ETH
1000
0,1428 %
MATIC
1000
0,1428 %
FTM
1000
0,1428 %
ETH (arbitrum)
1000
0,1428 %
ETH (optimism)
1000
0,1428 %
Total Weight = 1000 * 7 = 7000
To become a Liquidity Provider one needs to choose one of the assets to be used for deposit.
In this example we choose ETH.
1. Liquidity Provider calls addLiquidity() method on ChildCommunicator.sol on Ethereum network.
2. It will lock a certain amount of ETH native tokens in Lock.sol contract on Ethereum network
3. And it sends a LayerZero (L0) message to MasterCommunicator.sol on Avalanche network (considering as masterchain) with the following payload:
{uint8method,// ADD_LIQUIDITY_TYPE = 2uint256poolId,// id of the pool, genesis pool = 0addresstoken,// token for adding liquidityuint256amount,// amount of tokenaddressfrom,// address of senderaddressto,// address of receiver, LP tokens will be sended whobytesmemorydata// arbitrary data for post-action integrations}
4. MasterCommunicator.sol will get a Pool contract using poolID, then call addLiquidity() function in the InterswapPool.sol contract, which will:
- Increase the reserves of ETH in pool state
- Increase the weight of the ETH in the pool using formula in Dynamic Weights
- Mint LPs on to address on masterchain
Let's take that ETH weight was increased for 50 points. After adding liquidity we can see such a picture of pool structure: