Liquidity Pools
Mero liquidity pools are isolated and asset specific. Meaning, each supported asset has its own pool and allows Mero to deploy pooled assets to optimal yield farming strategies. Furthermore, single-asset pools are advantageous to users due to the elimination of impermanent loss.
Reserve Ratios
All pools have a required reserve ratio. This is the ratio of assets that remain idle and are not utilized for a yield farming strategy. Specific reserve ratios are selected to optimize gas efficiency.
Target Allocation Factor
Each pool maintains a target allocation factor. This is the ratio of total assets in the pool that are deployed to a yield farming strategy. The remaining assets that are not deployed remain idle for gas expenditures.
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