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As a Liquidity Provider (LP), you deposit stablecoins into Ratio’s pools and earn a share of FX swap fee revenue. Ratio supports both institutional LPs and stablecoin issuers as liquidity sources.

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How it works

1

Deposit stablecoins

Request a deposit authorisation from Ratio, then send the deposit transaction from your whitelisted wallet. The Vault contract pulls the stablecoin into the pool for your chosen LP class.
2

Receive kTokens

You receive kTokens — share tokens representing your proportional share of the pool. Each deposit is recorded with its own deposit ID.
3

Earn swap fees

Your share of swap fees accrues on-chain in the fee distributor and is paid out in USDT when you claim it. Class B LPs also earn yield on the portion of their deposit placed in yield strategies.
4

Withdraw

After a deposit’s cooldown period has passed, request a withdrawal. It is queued on-chain, and larger withdrawals have a notice period before Ratio processes them and the pool pays out the stablecoin.

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kTokens

Each supported stablecoin has two kTokens — one per LP class: kTokens are share tokens: your kToken balance is the number of pool shares you hold, and it does not change as fees accrue. The shares are redeemable for your portion of the pool’s assets on withdrawal. Swap fees are tracked separately and claimed in USDT.
kToken symbols follow the underlying token’s on-chain symbol (USDT’s is USD₮). Sandbox test tokens use different symbols, so sandbox kTokens appear as, for example, kmIDRX-fx.

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LP classes

Ratio supports two LP classes to accommodate different risk preferences.
Deposits are allocated to pools that support FX execution only. Class A LPs earn swap fees but are not exposed to yield strategy risk.This is the default class for stablecoin issuers who want full capital preservation.
You choose the LP class for each deposit. The classes and pools available to you are enabled during onboarding — contact your account manager to change them.

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Fee revenue

You earn revenue from every swap that touches your pool. When a user swaps USDT for IDRX, both the USDT pool and the IDRX pool earn a portion of the swap fee. Revenue is allocated in proportion to each LP’s share of the pool, accrues on-chain, and is paid in USDT when claimed. Higher-volume pools generate more fee revenue for their LPs.

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Withdrawal process

LP withdrawals are designed to protect pool stability:
  1. Cooldown — each deposit has a cooldown period that starts when the deposit is made. A deposit can only be included in a withdrawal request after its cooldown has passed.
  2. Withdrawal request — Ratio authorises the withdrawal, and your wallet submits it on-chain. The deposits are locked and the request is queued.
  3. Notice period — standard-size withdrawals can be processed immediately; larger withdrawals have a notice period that depends on their size.
  4. Payout — after any notice period, Ratio processes the withdrawal: your kToken shares are burned and the pool transfers the stablecoin to your wallet.
A queued withdrawal can be cancelled before it is processed.
Large withdrawals may be processed in tranches to avoid destabilising pool balances. Plan your withdrawal timeline accordingly.

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Requirements

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Getting started

To become an LP, contact the Ratio team to begin the LP onboarding process. Onboarding covers:
  • Compliance verification (KYB)
  • LP class selection (Class A or Class B)
  • Wallet whitelisting
  • Deposit routing configuration
Once onboarded, you can deposit through the partner portal or API, or by contacting your account manager to arrange deposit routing.