Ozmium DocsLiquidity
Provide liquidity to the OZ pools on Aerodrome and Uniswap v3 - fee income, why full range is the default, impermanent loss, and claiming fees without closing.
Providing liquidity means depositing both sides of a trading pair into a pool so other people can swap against it. In exchange you collect a share of every swap fee routed through that pool.
It is the other side of Trade. Someone has to be there when a swap arrives.
The Two OZ Pools
| Pool | Venue | Style | Notes |
|---|---|---|---|
| OZ / USDC | Aerodrome | vAMM (Volatile Pair) | Straightforward Two-sided Deposit |
| OZ / WETH | Uniswap v3 | Concentrated liquidity, 1 percent fee tier | Ozmium places this at full range |
Why Full Range on Uniswap v3
Uniswap v3 lets you concentrate liquidity in a price band. A tight band earns more fees per dollar deployed - right up until the price leaves the band, at which point the position stops earning entirely and sits fully converted into the losing side.
Ozmium defaults the OZ/WETH position to full range. A full-range position earns less per dollar but never goes out of range. For a position nobody is actively watching, and especially for an autonomous agent that will not be monitoring price, that is the only defensible default.
If you want a tighter band, manage it directly on Uniswap. Ozmium will not quietly put you in a position that requires supervision you did not agree to provide.
Adding Liquidity
- Choose the pool.
- Enter an amount. Ozmium computes the matching amount for the other side at the current ratio.
- Approvals are prepended automatically for both sides when the live allowance is short. On the Uniswap v3 path this is a bundled multicall, with ETH auto-wrapped and any excess refunded.
- Sign.
Claiming Fees without Closing
This is the part people miss.
Impermanent Loss, Plainly
That is an open OZ/USDC position, down $8.58 against $30.39 deposited, reported in plain red rather than behind a headline APR. Worth looking at before the mechanics rather than after, because it is what providing liquidity can do.
If OZ and the paired asset diverge in price, the pool rebalances you into more of the falling asset and less of the rising one. Compared with simply holding both tokens, you end up worse off by an amount that grows with the divergence.
Fees offset this. Whether they offset it enough depends on volume relative to divergence, and nobody can promise you that ratio in advance. Impermanent loss becomes permanent the moment you withdraw.
Risks Worth Naming
- Impermanent loss as described above.
- Smart-contract risk in the pool contracts.
- Thin-pool volatility. A pool with modest depth moves hard on modest volume, in both directions.
- Fee income is not guaranteed. No volume means no fees, and the impermanent loss does not care.
FAQ
What is impermanent loss?
If the two sides of a pool diverge in price, the pool rebalances you into more of the falling asset and less of the rising one. Compared with simply holding both tokens you end up worse off, and the gap grows with divergence. It becomes permanent the moment you withdraw.
Why does Ozmium default the Uniswap v3 position to full range?
A tight range earns more fees per dollar until price leaves the band, at which point the position stops earning entirely and sits fully converted into the losing side. Full range earns less but never goes out of range, which is the only safe default for a position nobody is watching.
Can I collect LP fees without closing my position?
Yes. On Uniswap v3, remove with liquidity: 0 collects accrued fees and leaves the position intact.
Which OZ pools does Ozmium support?
Aerodrome OZ/USDC as a volatile-pair vAMM, and Uniswap v3 OZ/WETH in the 1 percent fee tier at full
range. Both are reachable from the app and from the /v1/tx/lp/* builders.
For Agents
POST /v1/tx/lp/aero/add,/v1/tx/lp/aero/remove- Aerodrome OZ/USDC.POST /v1/tx/lp/uni/add,/v1/tx/lp/uni/remove- Uniswap v3 OZ/WETH full range.
See Endpoint Catalog.