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.
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.
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.