Glossary
Liquidity pool (LP)
A liquidity pool is a pair of token balances held by an exchange contract that anyone can trade against; the ratio between them sets the price. Liquidity providers deposit into it and earn fees. A one-sided position deposits only one of the two tokens, in a price range away from the current price.
A one-sided position above the market holds only the token. It sells nothing at today’s price and converts into the pair coin only as buyers push the price into its range.
That is what Ballistic’s Reserve mode uses: a Meteora DLMM position on Solana, and a Uniswap V4 position in the token’s own Pons pool on Robinhood Chain.
How the price is set. In a standard pool the ratio of the two balances sets the price, and every trade moves it. A one-sided position behaves differently: it holds only one token, so it sells nothing at today’s price and starts to convert only when the price reaches its range.
In Reserve mode the position belongs to the creator’s custody wallet or, on Pons, sits in the token’s own pool. It is on chain like any other liquidity position, and the creator can pull supply out of it to sell.
Questions
What is a one-sided liquidity position?
A deposit of only one of the pool’s two tokens, placed in a price range away from the current price. It does nothing until the price enters the range.
Who earns the fees of a liquidity pool?
The liquidity providers, in proportion to their share. The rules depend on the exchange and the pool type.
Is a Reserve position a liquidity pool?
It is a liquidity position in one: a Meteora DLMM position on Solana, a Uniswap V4 position on Pons and a position in a PancakeSwap pool on flap.sh. How Reserve works.