Craftec Docs

Overview

Liquidity providers (LPs) deposit tokens into SalamCraft pools and earn fees from trading activity. The pool acts as the counterparty to all trades.

How It Works

Deposit tokens (USDC, SOL, etc.) into a pool
Receive LP tokens proportional to your share of the pool
Earn fees from every trade — opening fees, closing fees, and borrowing fees
Withdraw at any time by burning your LP tokens

LP Token Value

LP tokens represent your share of the pool's total value. The pool value includes:

All deposited tokens (balance)
Accumulated fees from trading
Realized PnL from closed positions

As fees accumulate and traders have net losses, LP token value increases. If traders have net profits, LP token value may decrease.

Depositing

Select the token you want to deposit
Enter the amount
Review the estimated LP tokens you'll receive
Confirm the transaction

The LP tokens are minted based on the current pool valuation using oracle prices.

Withdrawing

Enter the amount of LP tokens to burn
Select which token you want to receive
Review the estimated output and available liquidity
Confirm the transaction

Important: Withdrawals are limited by available liquidity. Tokens locked in open positions (collateral, Qard loans) cannot be withdrawn until those positions close.

Cooldown Period

After depositing, there is a short cooldown period before you can withdraw. This prevents flash-loan-style exploits where someone deposits, captures fees, and withdraws in the same transaction.

Risks

Trader profits: When traders profit, it comes from the pool — reducing LP value
Market exposure: The pool holds multiple tokens, so LP value fluctuates with token prices
Smart contract risk: As with any DeFi protocol, there is inherent smart contract risk

Revenue Tracking

SalamCraft tracks pool revenue in a 30-day rolling window, allowing LPs to see annualized yield (APY) based on recent fee generation.

Providing Liquidity