# 4.2 Fog Pools vs. Traditional LPs

In traditional Liquidity Provisioning (LPing), users face Impermanent Loss (IL). If the price of an asset changes relative to another, the LP loses value compared to simply holding. This is a flaw of the Constant Product Market Maker (CPMM) model.

Accessth replaces the CPMM with the Fog Pool Model.

Definition: Fog Pool A single-sided liquidity sink that accepts assets (ETH, USDC, WBTC) and issues Access Rights. The Fog Pool does not pair assets (e.g., ETH/USDC). It aggregates them.

When a swap occurs within the Accessth ecosystem (e.g., a user wants to pay in USDC but holds ETH rights), the Fog Pool executes an atomic rebalancing. Because the pool is monolithic, it can internally net off opposing flows (JIT Netting).

Benefits of the Fog Pool Structure:

1. Zero Impermanent Loss for Users: Users hold rights to a specific value amount or token quantity. The protocol manages the backend inventory risk.
2. Infinite Depth Simulation: For the average user transaction, the Fog Pool appears to have infinite depth because it accesses the aggregate liquidity of the entire protocol, not just a specific pair.
3. Slippage Minimization: By aggregating internal volume and netting it off before routing to external markets, the Fog Pool creates a "Dark Pool" effect, reducing price impact.


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