legacy liquidity

Prior to concentrated liquidity, Uniswap v2 pairs were the standard for DeFi liquidity. Wick implements these traditional pairs alongside stable pairs for correlated assets.

swaps

On Wick, users can swap tokens for other tokens. Each trade's exchange rate and slippage is determined by the total value of the liquidity pair and the current pair balance.

pair types

Wick features two types of Liquidity Pairs, each with its own curve:

• Volatile (Uni V2): The most common type of pair where tokens are paired with equal weights in terms of dollar value. Uses the formula x * y = k.

• Stable (Correlated): These pairs use an optimized curve designed specifically for correlated assets like stablecoins. The curve features a modified invariant that allows for highly efficient swaps with minimal slippage between tokens of similar value. Uses the formula xy(x^2 + y^2) = k.

swap curves

visualization

To provide a graphical representation of the swap curves, the graph below illustrates the variance between 0 and 100. It demonstrates that the Orange (Correlated) curve exhibits less slippage from the mean as k fluctuates.

price impact

Liquidity depth directly affects trade execution. In legacy pairs, the entire liquidity is spread across all prices, so larger pairs provide better execution with less slippage. The chart below illustrates how trade size relative to pair liquidity affects price impact.

fee structure

pairs

Legacy pairs use the classic 50/50 deposit model: provide equal dollar value of two tokens, receive LP tokens representing your share of the pair. Your position covers the entire price range from zero to infinity, so it is always active and always earning fees.

how it works

1. Deposit equal value of Token A and Token B into the pair.
2. Receive LP tokens proportional to your share of total pair liquidity.
3. Earn swap fees on every trade that passes through the pair. Fees are auto-compounded back into the pair, growing your LP position over time.
4. Withdraw anytime by burning your LP tokens.

rewards & incentives

LP earnings come from two sources:

• Swap fees: earned directly from every trade in the pair, automatically reinvested into the position.
• LP incentives: additional WICK emissions may be allocated to legacy pairs by sWICK voters, providing rewards on top of swap fees.

key differences from concentrated liquidity

limit orders & TWAP

overview

Limit orders allow you to set a specific price for buying or selling tokens. The order only executes when the market reaches your target price, giving you control over execution timing and price.

TWAP (Time-weighted Average Price) breaks large orders into smaller chunks executed over time to minimize price impact. Use TWAP when trading large amounts or during volatile periods.

how it works

The protocol uses a maker-taker model:

• Makers submit orders with price and expiration parameters
• Takers compete to execute orders at the best possible price
• Orders execute directly through DEX pools with no intermediary custody

configuration parameters