Liquidity Pools

Pools are referenced by an ID number. Pools may fit the following classifications:

• Preferred Pool (also referred to as the Spartan Council Pool) - This is the main pool managed by governance. This is the pool suggested by default for liquidity providers to participate in. This pool's ID can be retrieved by calling the getPreferredPool function.

• Approved Pools - The Spartan Council also specifies approved pools with IDs that can be retrieved with the getApprovedPools function. This is expected to be a series of pools owned by the Spartan Council with exposure to different combinations of markets.

• Zero Pool (also referred to as delegating to “no pool”) - A pool exists at ID 0 which backs no markets and never can (because it has no owner). Depositing collateral with this pool is similar to using a decentralized borrowing protocol, where the only functionality is minting and burning snxUSD.

• Permissionlessly Created Pools - During Synthetix V3 Alpha/Beta phases, a feature flag has been set which disables the permissionless creation of pools. When governance chooses to alter this feature flag, anyone will be able to create and configure their own pool.

Any liquidity position delegated to a pool could be indirectly liquidated by the owner of the pool. There is always risk, but be especially cautious when providing liquidity to pools that aren’t approved by governance.