> For the complete documentation index, see [llms.txt](https://docs.geode.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.geode.fi/key-concepts/bound-liquidity-pools.md).

# Bound Liquidity Pools

#### Geode Finance provides an optional B**ound** Liquidity Pool to any Staking Pool utilizing The Staking Library.

### One Transaction To Rule Them All

Creating a liquidity pool is not a separate and time consuming process. Anyone can optionally create a bound liquidity pool within the same transaction used to create their staking pool. 

<figure><img src="/files/v049ozAvgoIbk3eV4BV4" alt=""><figcaption></figcaption></figure>

## <mark style="color:purple;">Optimized</mark>

Geode's Liquidity Pools are optimized for staking derivatives:

### Better Pricing

Geode's liquidity pools provide better pricing by utilizing a **stableswap pool with a dynamic peg.** Meaning instead of using a pricing algorithm for the derivatives, it uses an algorithm for the underlying Ether.

### Peg Protection

When your staking derivative has a bound liquidity pool, Portal checks if there is a better price on the market before minting any new tokens.&#x20;

Preventing any supply increase without balancing the demand, while giving your stakers a better price.

### Easy Routing

Using Geode Finance's liquidity pool allows your stakers to move their funds between different staking derivatives in just one transaction, with minimal slippage.

## <mark style="color:purple;">No Admin Fees</mark>

Conventional stableswap pools charge an admin fee up to 50%, meaning only 0.02% of 0.04% is shared with the LPs.

Geode Finance doesn't collect any admin fees on their liquidity pools.

#### 100% Higher APR

Geode gives all of the 0.04% fee to the Liquidity Providers, resulting in a 100% increase on the base APR.

## <mark style="color:purple;">Future Utilities</mark>

The Geode team is constantly working on improving The Staking Library with more functionalities.

There are many features that might require having a bound liquidity pool in the future.

If your pool has a bound liquidity pool, your stakers will be able to utilize these, and many other futures instantly.

**Such as:**

{% content-ref url="/pages/dbkn4i9j3YIpqSsYDBc7" %}
[Synthetic Liquidity (WIP)](/key-concepts/future-of-geode/synthetic-liquidity-wip.md)
{% endcontent-ref %}

{% content-ref url="/pages/zE53gGgMS4FfwVrNpLo9" %}
[Dynamic Withdrawals (WIP)](/key-concepts/future-of-geode/dynamic-withdrawals-wip.md)
{% endcontent-ref %}

## <mark style="color:purple;">Learn More:</mark>

{% content-ref url="/pages/YPoBnC5WwSrxMzFkdBi6" %}
[Liquidity Pool HandBook](/ethereum-guides/liquidity-pool-handbook.md)
{% endcontent-ref %}