# handle Liquidity Pool (hLP)

the handle liquidity pool **(hLP)** comprises a basket of currency\* assets, that 

(i)   provide the liquidity for protocol users to borrow for leveraged trades, \
(ii)  acts as counterparty to all trades, absorbs any trader wins or losses, and \
(iii) provides liquidity for any cross asset spot FX swaps.\
\
liquidity capital providers to the **hLP** can deposit any **approved asset** into the pool and will receive **hLP** which is automatically staked in order to earn fees. 

fees to deposit into the **hLP** will vary dependent on the balance of assets in the index. the current fees can be found on the convert page when converting to hLP.\
\
**hLP** holders earn a share of trade and funding related fees, swap fees, and returns from any trader losses and liquidations

additionally, based on a users [**veFOREX** ](https://docs.handle.fi/high-priority/governance-staking-veforex)balance, they may also receive boosted pool rewards and APYs 

all fees and rewards related to **hLP** are distributed in the protocol token FOREX

#### current target weights

<figure><img src="https://2945677417-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MUR8MivZ356lgVw_jq_-887967055%2Fuploads%2FZCZtpBlAKlqzm5RNlcMj%2Fimage.png?alt=media&#x26;token=d2d87ea8-e9c3-4365-8486-3bba190ce1d9" alt=""><figcaption><p>hLP target weights</p></figcaption></figure>

<table><thead><tr><th width="322">approved asset</th><th>target weight</th></tr></thead><tbody><tr><td>ETH</td><td>5.0%</td></tr><tr><td><span data-gb-custom-inline data-tag="emoji" data-code="1f1fa-1f1f8">🇺🇸</span> fxUSD</td><td>47.5%</td></tr><tr><td><span data-gb-custom-inline data-tag="emoji" data-code="1f1ea-1f1fa">🇪🇺</span> fxEUR</td><td>27.0%</td></tr><tr><td><span data-gb-custom-inline data-tag="emoji" data-code="1f1ef-1f1f5">🇯🇵</span> fxJPY</td><td>2.0%</td></tr><tr><td><span data-gb-custom-inline data-tag="emoji" data-code="1f1ec-1f1e7">🇬🇧</span> fxGBP </td><td>6.0%</td></tr><tr><td><span data-gb-custom-inline data-tag="emoji" data-code="1f1e8-1f1e6">🇨🇦</span> fxCAD</td><td>4.0%</td></tr><tr><td><span data-gb-custom-inline data-tag="emoji" data-code="1f1e6-1f1fa">🇦🇺</span> fxAUD</td><td>2.0%</td></tr><tr><td><span data-gb-custom-inline data-tag="emoji" data-code="1f1e8-1f1f3">🇨🇳</span> fxCNY</td><td>2.0%</td></tr><tr><td><span data-gb-custom-inline data-tag="emoji" data-code="1f1e8-1f1ed">🇨🇭</span> fxCHF</td><td>1.5%</td></tr><tr><td><span data-gb-custom-inline data-tag="emoji" data-code="1f1f8-1f1ec">🇸🇬</span> fxSGD</td><td>1.0%</td></tr><tr><td><span data-gb-custom-inline data-tag="emoji" data-code="1f1f0-1f1f7">🇰🇷</span> fxKRW</td><td>1.0%</td></tr><tr><td><span data-gb-custom-inline data-tag="emoji" data-code="1f1f5-1f1ed">🇵🇭</span> fxPHP</td><td>1.0%</td></tr></tbody></table>

\
\*5% of the basket is currently ETH, which facilitates a whole range of range swaps and protocol related route optimisations.

{% hint style="info" %}
holders of hLP own a potentially high yielding, global currency near neutral FX exposure asset. (not withstanding pool specific risks)\
&#x20;

pool composition aims to create an asset such that a user is neither LONG nor SHORT USD,  instead owning exposure to a basket of global currencies - approximating 50% USD and 50% the **US Dollar INDEX (**[**DXY**](https://en.wikipedia.org/wiki/U.S._Dollar_Index)**)**
{% endhint %}

#### how to view current & target composition and utilisation

1. go to [app.handle.fi/convert](https://app.handle.fi/convert)
2. select hLP as 'from' or 'to' token
3. select "hLP breakdown"

<figure><img src="https://2945677417-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MUR8MivZ356lgVw_jq_-887967055%2Fuploads%2Fvrv9n6mfUVHD8hD6bSES%2Fimage.png?alt=media&#x26;token=ebb753d7-eeb9-47a0-9142-4394f2c0f1e1" alt=""><figcaption></figcaption></figure>

to find out how to add liquidity to hLP [**click here**](https://docs.handle.fi/the-platform/pool/broken-reference)