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DeFi / Illustrated lesson

Pool deposits and withdrawals
Liquidity shares are not the same as pool assets.

A liquidity provider deposits assets and receives a claim on a pool under its rules. Withdrawing may burn that claim and release underlying assets. Swaps follow a different path.

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  1. 01

    Assets enter or leave a pool

  2. 02

    Pool accounting changes

  3. 03

    Shares are minted or burned

Illustrative sequence. This diagram is a teaching aid, not a captured transaction.

What to collect

  1. Pool implementation and called function
  2. Underlying token movements
  3. Liquidity-token or position changes
Before drawing a conclusion

Do not add shares and underlying assets as though they were separate losses. Logs need context from the contract and receipt.

Test the idea

A user deposits assets and receives pool shares. Is receiving shares a second independent gain?

Reveal the explanation

No. The shares represent the position acquired for the deposit. Account for the exchange of assets and claims.

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