> For the complete documentation index, see [llms.txt](https://docs.loxodrome.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.loxodrome.xyz/terminology-know/liquidity.md).

# Liquidity

In the ecosystem, there are two types of liquidity pools available: stable pools and variable pools. These pools cater to different types of trading pairs:

sAMM (Stable Automated Market Maker):

1.sAMM pools are designed for strongly correlated pairs, such as stablecoins.

2.The trading fee for sAMM pools is set at 0.2%. This fee is applied to trades made within these pools.

vAMM (Variable Automated Market Maker):

1.vAMM pools are intended for uncorrelated pairs, such as the $LOXO and $IOTX pair.

2.The trading fee for vAMM pools is set at a higher rate of 0.5%. This fee is charged on trades conducted within these pools.

The variation in trading fees between sAMM and vAMM pools reflects the differing characteristics and risks associated with the respective trading pairs. The fees generated from these pools contribute to the overall revenue and sustainability of the protocol.

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