Before TGE

Asset Buyers:

Buyers can use USDC to create a buy position, representing the amount of pre-market assets they will receive.

Asset Sellers:

Sellers must provide collateral to sell an asset by depositing USDC equal to the value of the pre-market assets they want to sell.

Liquidity Providers (LPs):

LPs add liquidity to Bubbly Finance pools using USDC for pre-market assets and quote tokens (USDC), earning swap fees in return.

LPs must select a price range for their LP position. Depending on the price of the pre-market assets relative to the selected price range, the composition of the LP position varies:

• Below Lower Limit: The LP's liquidity will be entirely in pre-market assets, which requires providing USDC as the corresponding margin.

• Within Range: The LPs' position will contain both pre-market assets and USDC. LPs only need to provide USDC, which serves as both USDC liquidity and the margin for pre-market assets liquidity.

• Above Upper Limit: The LP position will be entirely in USDC.

LPs can withdraw liquidity at any time. Upon withdrawal, the LP position is closed, and the user will receive a buy/sell position based on the LP’s final composition:

• More Pre-market Assets: The user gets a buy position.

• Fewer Pre-market Assets: The user gets a sell position.