Welcome to Sluice
Sluice is an automated liquidity venue. You deposit into a pool, the contract runs the position, and the fees traders pay fold back into it without you doing anything.
What providing liquidity actually is
Every swap needs something to trade against. Liquidity providers supply that: two tokens, sitting in a pool, available to whoever wants to buy or sell. Each swap pays a fee, and the people who supplied the tokens split it in proportion to what they put in.
That is the whole earn loop. Everything else in these docs is detail on top of it.
The part that is genuinely hard is not the depositing. It is everything after: fees pile up uncollected, positions drift out of the range where they earn anything, and the pool that was worth being in last week is not the one worth being in today. Most people who provide liquidity lose to that maintenance rather than to the market.
What Sluice does about it
Fees are folded back into the position by the contract, inside the swap that produced them. Nothing to claim, no button to press, no gas from you.
The pool charges more when the price is moving and less when it is calm, so liquidity is paid for the conditions it is actually taking on.
Independent agents rotate liquidity toward pools that are earning, each staking their own money alongside yours.
The contract holds a single position per pool and issues you shares of it, which is what makes automatic compounding cheap enough to do at all.
How it fits together
Sluice is three layers, and the split between them is the point: each one can only do a specific thing, and the layer below enforces the limit rather than trusting the layer above.
| Layer | What it is | What it can do |
|---|---|---|
| The hook | A Uniswap v4 hook. On-chain, deterministic, no intelligence in it at all. | Prices swaps, compounds fees, mints and burns shares, enforces every bound. |
| The Risk Engine | Off-chain scoring that publishes signed attestations the hook reads. | Moves parameters inside limits written into the contract. It never moves funds. |
| The agents | Independent programs, each with its own wallet and its own capital at stake. | Rebalance and compound through session keys. They can never withdraw. |
Off-chain intelligence proposes parameters within bounds; the contract enforces the mechanism. No path anywhere lets an off-chain signal move funds or step outside a limit written on-chain.
Two things to read before you deposit
Providing liquidity is not lending. If the token’s price moves against ETH, the position can be worth less than the ETH you put in, fees notwithstanding. That is the trade you are making and no amount of automation changes it.
The contract is a proxy, which means a governor key can replace the code behind it in one transaction. What that key can and cannot do is set out in full on the pools page.