LP FAQ

LP Common Questions

To help you better understand Liquidity Pools (LP) and how to provide liquidity on SEGA, here are some common questions and answers:

What’s APR All About?

APR (Annual Percentage Rate) on SEGA reflects pool and farm yields, calculated from daily (default), weekly, or monthly performance. These figures are just snapshots—past gains don’t guarantee future wins.

Where Does the Yield Come From?

SEGA’s yield flows from two main streams:

--Maker Fees: Collected from swaps in the pool.

--Eco Rewards: Ecosystem partners contribution

Why Provide Liquidity to SEGA AMM Pools?

Liquidity providers score big:

• Swap Fees: Each pool trade takes a 0.25% fee—84% goes back to the pool for LPs, 16% fuels SEGA Ecosystem & protocol.

New to impermanent loss? Peek at this primer to get the basics, reviewing this article for a basic understanding is highly recommended.

What Are LP Tokens?

LP (Liquidity Provider) tokens are your proof of ownership in a pool. Drop SOL and SEGA into the SOL-SEGA pool, and you’ll snag SOL-SEGA LP tokens, visible in your Sonic SVM wallet.

Why Did My Transaction Fail?

Common reasons include:

• Insufficient SOL: Network fees (gas) require SOL—keep at least 0.05 SOL in your wallet.

• Slippage Tolerance: If pool prices shift beyond your set tolerance, the transaction fails. Increase it on the swap interface

• Pending Approvals: A “Making Transaction” notice means your SPL wallet needs approval—confirm it promptly.

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