# Understanding USDFI Pools Providing liquidity carries certain risks. In this section, the different pools within the USDFI ecosystem will be reviewed, in order to assist users in finding a pool that aligns with their risk tolerance. The risks associated with being a liquidity provider on USDFI will also be explained. At present, there are several USDFI pools available, with new pools being added on a regular basis subject to whitelisting. It is important to note that when providing liquidity to a pool, one is exposed to both tokens within the pool regardless of the tokens deposited, therefore it is crucial to choose a pool with coins that a user is comfortable holding. All USDFI liquidity gauges receive STABLE based on how much the DAO allocates to it. {% hint style="info" %} All USDFI liquidity gauges receive STABLE based on how much the DAO allocates to it. {% endhint %} ## Revisiting the concept of liquidity pools Liquidity pools are pools of tokens that exist within smart contracts. They can be a complex concept to understand, particularly for those new to Ethereum or DeFi. As an example, if one were to create a pool consisting of both USDT and USDC, where 1 USDT is equal to 1 USDC, and the pool contains 1,000 tokens of each (1,000 USDT and 1,000 USDC), If a trader exchanges 100 USDT for 100 USDC, the pool would then contain 1,100 USDT and 900 USDC, causing the price of USDC to slightly decrease in order to encourage another trader to exchange USDC for USDT, thus balancing the pool again. ![](/files/7h0w9P7kspZfu73mK5QZ) ## APY It is important to understand the role of the different pools in USDFI and how liquidity providers earn money. USDFI earns revenue from trading fees. When a user exchanges tokens through the USDFI website, 1inch, Paraswap, or another decentralized exchange aggregator, a small fee is earned and distributed as a bribe to veSTABLE holders, split evenly among all holders. APY may be higher on days with high volume and volatility; and may be low on some days. ## Fees Swap fees on USDFI for sAMM are generally 0.04% and for vAMM 0.30%, which is considered to be one of the most efficient ways to exchange stablecoins and other tokens on the any EVM blockchain. **Deposit and withdrawal fees are 0% in the protocol**. There may be network fees. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.usdfi.com/usdfi-amm/understanding-usdfi-pools.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.