Wood Liquidity Documentation

Wood Liquidity is a non-custodial liquidity management application built on Robinhood Chain, an Arbitrum Orbit L2 network. It provides a streamlined interface for discovering pools, creating concentrated liquidity positions, and managing your DeFi portfolio.

To interact with Wood Liquidity, you need a Web3 wallet. We support most popular wallets through RainbowKit.

Supported Wallets

• MetaMask (Browser Extension & Mobile)
• WalletConnect (Mobile Wallets)
• Coinbase Wallet
• Rainbow Wallet
• And many more...

How to Connect

1. 1Click the "Connect Wallet" button in the header
2. 2Select your preferred wallet from the list
3. 3Approve the connection in your wallet
4. 4Switch to Robinhood Chain if prompted

Robinhood Chain is an Arbitrum Orbit L2 network. Here are the network details:

The pool screener on the /pools page lets you discover and analyze liquidity pools on Robinhood Chain.

Pool Categories

Pool Statistics

Each pool displays the following metrics:

• Market Cap — Total value of all tokens in circulation (price × total supply)
• 24h Change — Price change over the last 24 hours
• 24h Fees — Total trading fees generated in the last 24 hours
• 24h Trades — Number of swap transactions in the last 24 hours
• 24h Volume — Total trading volume in USD over the last 24 hours
• Age — Time since the pool was created

Use filters to narrow down pools based on your preferences.

Quote Token Filter

Filter pools by their quote token (the token paired against):

• All — Show all pools
• ETH — Only pools paired with WETH
• USDG — Only pools paired with USDG stablecoin

Sorting

Click on any column header to sort the table by that metric. Click again to reverse the sort order.

Click on any pool to view its detailed page. The pool detail page includes:

• Token Information — Token name, symbol, and contract address with copy button
• Price Chart — Interactive price chart showing market cap over time
• Stats Panel — Real-time market cap, 24h change, volume, fees, and liquidity
• Position Builder — Create new liquidity positions directly on this page
• Your Positions — View and manage your existing positions in this pool
• Pool Selector — Switch between different fee tiers (V3/V4) for the same token pair

The price chart displays market cap history with multiple timeframes:

Hover over the chart to see exact values at any point in time. The chart automatically updates with the latest data.

Creating a liquidity position allows you to earn trading fees from swaps that occur within your selected price range.

Steps to Create a Position

1. 1
   Navigate to Pool

   Go to the pool detail page for the token pair you want to provide liquidity for.

2. 2
   Select Position Shape

   Choose your position shape: SPOT (±5%), CURVE (±25%), or WIDE (±50%). Narrower ranges earn more fees but require more active management.

3. 3
   Enter Amount

   Enter the amount of ETH (or tokens) you want to deposit. Use the MAX button to use your full balance (keeping a small amount for gas).

4. 4
   Review & Confirm

   Review the position details and confirm the transaction in your wallet.

The Zap feature allows you to create a liquidity position using only one token (typically ETH). Our smart contract automatically:

1. 1Calculates the optimal split based on your price range
2. 2Swaps part of your ETH for the other token
3. 3Creates the liquidity position with both tokens
4. 4Returns any leftover dust back to your wallet

V3 vs V4 Pools

We support both Uniswap V3 and V4 pools. The system automatically detects the pool type and uses the appropriate Zap contract:

• V3 Pools — Standard Uniswap V3 concentrated liquidity positions (NFT-based)
• V4 Pools — Newer Uniswap V4 pools with hooks support and improved gas efficiency

View and manage all your positions on the /positions page or directly on each pool's detail page.

Position Card Information

Each position card displays:

• Token Pair — The two tokens in the pool
• Fee Tier — The pool's fee percentage (e.g., 0.3%)
• Range Status — Whether your position is currently in range or out of range
• Price Range — Your min and max price boundaries, plus the current price
• Liquidity — Current amounts of each token in your position
• Uncollected Fees — Earned fees waiting to be claimed

As swaps occur within your price range, you earn a portion of the trading fees. These fees accumulate and can be collected at any time.

How to Collect

1. 1Find your position on the Positions page or Pool detail page
2. 2Check the "Uncollected Fees" section for available rewards
3. 3Click the "Collect" button
4. 4Confirm the transaction in your wallet

You can add more liquidity to an existing position at any time. This keeps your price range the same but increases your share of the fees.

How to Increase

1. 1Click the "Increase" button on your position card
2. 2Enter the amount of each token you want to add
3. 3Approve the tokens if this is your first time (one-time per token)
4. 4Confirm the transaction

Remove some or all of your liquidity from a position. This returns your tokens to your wallet.

How to Remove

1. 1Click the "Remove" button on your position card
2. 2Select the percentage to remove (25%, 50%, 75%, or 100%)
3. 3Review the estimated tokens you'll receive
4. 4Confirm the transaction

Concentrated liquidity is a mechanism introduced by Uniswap V3 that allows liquidity providers to allocate their capital within specific price ranges, rather than across the entire price curve.

How It Works

In traditional AMMs, your liquidity is spread across all possible prices from 0 to infinity. With concentrated liquidity:

• You choose a specific price range (e.g., $1800-$2200 for ETH)
• Your capital is only active when the price is within your range
• You earn fees proportional to your share of liquidity in that range
• Narrower ranges = higher capital efficiency = more fees (but more risk)

Choosing the right price range is crucial for maximizing your returns while managing risk.

Position Shapes

We offer three position shapes that automatically set your price range:

Custom Range

You can also set a custom range by entering specific market cap values for your min and max boundaries. This gives you full control over your position's price range.

Your position's range status determines whether you're earning fees.

Impermanent loss (IL) occurs when the price of tokens in your position changes compared to when you deposited them.

How IL Works

When you provide liquidity, the AMM automatically rebalances your position as the price changes. This means:

• If token A price rises: you end up with more of token B and less of token A
• If token A price falls: you end up with more of token A and less of token B
• The loss is "impermanent" because it can be recovered if prices return

Understanding how fees are calculated helps you estimate potential returns.

Fee Tiers

Different pools have different fee tiers:

Protocol Fee

Wood Liquidity charges a 10% protocol fee on trading fees earned. This means:

• 90% — Goes to liquidity providers (you)
• 10% — Protocol fee for development & maintenance

APR Calculation

APR is calculated based on trading volume and your share of liquidity:

Note that APR can vary significantly based on trading volume and price movements. Past performance does not guarantee future returns. The displayed APR already accounts for the 10% protocol fee.

Wood Liquidity interacts with the following smart contracts:

Core Contracts

• Uniswap V3 Factory — Official Uniswap deployment for pool creation
• NonfungiblePositionManager — Manages V3 LP positions as NFTs
• Zap Contract — Our custom contract for single-sided deposits (V3)
• ZapV4 Contract — Our custom contract for V4 pool deposits

Slippage protection ensures your transactions don't execute at unfavorable prices.

Default Slippage Settings

We use higher slippage tolerances for memecoins due to their volatility:

• Zap Swap: 50% (for the internal swap)
• Position Creation: 20% (for minting)
• Increase/Remove: 10% (for modifications)

Follow these guidelines to maximize your success as a liquidity provider: