Question 1

What is a liquidity pool?

Accepted Answer

A liquidity pool is a smart contract holding a reserve of two tokens that traders swap against on a decentralized exchange. By depositing both tokens, you become a liquidity provider and earn a share of the trading fees the pool collects. Sally lets you create and manage pool positions across Base and BNB Smart Chain.

Question 2

How do I add liquidity on Base?

Accepted Answer

Connect your wallet, choose Base, and select a token pair and DEX (Uniswap V2/V3/V4 or Aerodrome/Slipstream). Pick your price range and amounts, approve the tokens, and confirm. Sally builds the deposit and submits it on-chain; the position stays in your wallet. You then track and harvest fees from the same dashboard.

Question 3

What is concentrated liquidity (V3/V4)?

Accepted Answer

Concentrated liquidity lets you supply capital within a chosen price range rather than the entire price curve, so the same funds earn more fees while the price stays in range. Uniswap V3 introduced it and V4 refines it with hooks. Sally supports concentrated V3 and V4 positions on both supported chains.

Question 4

What is impermanent loss?

Accepted Answer

Impermanent loss is the value gap between holding LP tokens and simply holding the two underlying assets, which appears when their prices diverge. It only becomes a realized loss if you withdraw while prices are skewed, and accumulated trading fees can offset or exceed it. Concentrated ranges can amplify both fees and impermanent loss.

Question 5

How do I earn fees from providing liquidity?

Accepted Answer

Every swap routed through your pool charges a fee distributed to liquidity providers in proportion to their share of the active liquidity. The more trading volume your range captures, the more you earn. Fees accrue continuously to your position; with Sally you can monitor them live and claim whenever you choose.

Question 6

How do I claim or harvest my LP fees?

Accepted Answer

Open your position in Sally’s pools dashboard, view the unclaimed fees, and click harvest. Sally builds the on-chain transaction that collects accrued fees to your wallet without withdrawing your liquidity. You can also harvest across multiple positions at once, and where supported, claim fees in a single chosen token.

Question 7

What is rebalancing a liquidity position?

Accepted Answer

Rebalancing means moving a concentrated-liquidity position to a new price range, usually because the market price drifted outside your old range and stopped earning fees. Sally can rebalance V3 and V4 positions by withdrawing and re-minting around the current price, where supported in a single transaction so your capital keeps working.

Question 8

Is providing liquidity non-custodial — do you hold my LP?

Accepted Answer

No. Sally is fully non-custodial: your liquidity positions and LP tokens or NFTs live in your own wallet and interact directly with the DEX smart contracts. Sally never takes custody, cannot move your funds, and only constructs transactions you sign. Adding, harvesting, rebalancing, and withdrawing all require your wallet’s approval.

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