> For the complete documentation index, see [llms.txt](https://docs.meridian.money/meridian-protocol-documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.meridian.money/meridian-protocol-documentation/amm/pool-types/weighted-pools.md). # Weighted Pools **What are Weighted Pools?** Meridian's Weighted Pools operate by enforcing a Constant Weighted Product invariant for token swaps. A subset of these, known as liquidity bootstrapping pools, caters to auction-like mechanisms. These pools employ Weighted Math, making them versatile for a wide array of applications, including asset pairings without price correlation (e.g., ETH-USDC). | Property | Weighted | | ------------------ | -------- | | Max Tokens in Pool | 4 | | Default Swap Fee | 0.15% | | Oracle Usage | None | Unlike conventional x\*y=k pools which are limited to 2 tokens of equivalent weights (50/50) , Meridian's weighted pools offer flexibility in token counts and proportions. Users can create pools with different weightings such as 80/20 or 60/20/20, among others. Available pairs are dictated by the standard combination formula below: $$ $nC2 = \frac {n!}{2!(n-2)!}$ $$ Meridian supports weighted pools with up to 4 total assets. As each asset within a pool can be traded against any other, the number of available swaps grows exponentially - reaching up to \* pairs for pools with the maximum number of \_ tokens. This proliferation of swap pairs naturally encourages increased trading activity, thereby boosting fee collection and distribution to liquidity providers. **Impermanent Loss** Weighted pools offer flexibility in how assets are weighted against each other, allowing liquidity providers to adjust the proportion of each token in the pool. As the token weight increases in favor of one asset, it significantly reduces the unrealized impermanent loss. For example, Impermanent loss decreases in a two-token pool as the asset weight changes, relative to price fluctuations between the tokens. However, while weighted pools help minimize impermanent loss, they also introduce trade-offs in terms of price slippage. In pools where one token is heavily weighted, swaps experience higher slippage due to the reduced liquidity of the less weighted asset. To balance the reduction in impermanent loss with adequate liquidity, an 80/20 weighting ratio is commonly recommended. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.meridian.money/meridian-protocol-documentation/amm/pool-types/weighted-pools.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.