Deposit LP
Deposit a supported LP position into Avana to use it as collateral while it keeps earning fees in the pool.
Overview
Depositing an LP position establishes the collateral account used for borrowing. The borrower selects an approved market, authorizes transfer of the LP token or position NFT, and submits the deposit from a wallet that holds the position. Avana records custody of the position, values it, and adds its risk-adjusted contribution to borrowing capacity in the relevant Borrow Spoke. The underlying liquidity remains in the AMM and continues to accrue fees. A deposit does not create debt; borrowing is a separate transaction.
Deposit Flow
1. Choose a supported pool
Open the Avana interface and select an LP market that is live on your deployment. Only approved pools can be deposited. See Allowed LP Pools for how pool support is defined.
2. Approve and deposit your LP
Approve the LP token or position NFT if needed, then confirm the deposit. Avana routes the position into the Borrow Spoke for that market.
3. Wait for valuation
The spoke checks that the pool is approved, reconstructs the position, and applies collateral factors to calculate how much borrowing capacity the deposit adds.
4. Borrow when ready
Once the deposit clears, your borrowing capacity updates in the interface. You can move on to Borrow Assets when you want to draw liquidity from the Hub.
Technical Details
Borrowing power updates with the market. Capacity is recalculated from the LP position as prices, fees, and pool state change. The valuation recorded at deposit does not fix the position's borrowing capacity for the duration of a loan. LP formats differ by DEX. Some pools issue fungible LP tokens; concentrated-liquidity DEXs use position NFTs or position-manager shares. Avana handles both through the same spoke custody model. No unwind on deposit. You are not removing liquidity from the pool when you deposit. The position stays active in the AMM.
Supported LP Position Types
| Family | Examples | Admission Notes |
|---|---|---|
| Concentrated liquidity positions | Range-bound NFT or position-manager based LPs | Range, tick position, and fee accrual are part of the valuation path. |
| Fungible stable or correlated LPs | Stable-swap and tightly correlated pool shares | Pool inventory and unwind quality drive conservative borrowing power. |
| Weighted and multi-asset LPs | Weighted baskets and multi-token pools | Each supported family is admitted only through approved pool templates. |
After Deposit
- Your LP keeps earning trading fees in the underlying pool
- Borrowing capacity appears in the interface for that Borrow Spoke
- You can deposit more approved positions in the same market to add capacity
- Next step: Borrow Assets
