LP guide

Read this first: LPing carries risk of loss. Smart-contract risk exists, no audit has been done yet,
and there is no yield promised. Do not deposit more than you can afford to lose. See Security & risk.

Providing liquidity to Spherra means depositing stablecoins into one shared, capital-efficient pool. Here's what to know before you do.

1. What you deposit

You deposit stablecoins into a tick — a band of the sphere near the peg. In v1, positions are tracked as ERC-1155 shares per tick. Reserves are the pool's effective aggregate; your shares represent a pro-rata claim on a tick's real reserves.

2. Choosing a tick (the depeg parameter p)

You pick a depeg parameter p ∈ (0.5, 1) for your position. Intuitively:

• Tighter p (closer to 1) — capital is concentrated very close to peg. Maximum efficiency and depth

while stables are healthy; less cushion if one drifts.

• Wider p (lower) — more room before your position is affected by a depeg; less concentrated.

There's no "correct" value — it's a trade-off between efficiency and cushion. The dapp presents friendly presets ("Tight" / "Wide") that map to a real p, with a plain-English preview of what happens to your position if a stable depegs.

3. Fees

v1 is feeless (SPEC D7). LPs earn no trading-fee yield in v1, and we never promise yield. (A fee mechanism is designed and, if enabled, must be live and audited before any "LPs earn fees" claim — it is not on today.) You provide liquidity to be early in the proven venue, not to farm an APY.

4. What happens in a depeg

If a stablecoin you're exposed to depegs, the pool quarantines it and reduces dimension. Your position in the healthy stables keeps working; the quarantined asset is handled through the freeze → settle → lift lifecycle. This is designed to protect LPs from a single bad asset draining the pool — "designed to," not "guaranteed."

5. Adding and removing

• Add: addLiquidityAtDepeg(pDepeg, maxAmounts, minShares) — deposits across the active stables at your

chosen p, mints shares. Deposits round pool-favorably.

• Remove: removeLiquidity(tickId, sharesBurn, minAmounts) — burns shares, pays your pro-rata real

reserves. Removing is the inverse scale of adding; the pool stays on its (smaller) sphere.

Both revert if the result would violate the invariant or your minShares/minAmounts slippage bounds.

6. The honest risk list

• Smart-contract risk (no third-party audit has been done yet).
• A stablecoin you're exposed to can depeg; quarantine is designed to limit but not eliminate impact.
• v1 supports 18-decimal, non-fee-on-transfer tokens only.
• No fees / no yield in v1.

Full disclosures: Security & risk.