A Chemical pool is a powerful tool for users to earn additional rewards on top of their staked positions (spZKLAB). It can be created for LP tokens or single assets, making it highly adaptable to a wide range of use cases.
By adding a Chemical pool, protocols can generate higher returns for their emissions, while communities can be rewarded when they provide liquidity on a longer-term basis. The Chemical pool also provides a permissionless means of distributing incentives to pools, with the option to set multiple levels of requirements such as a minimum amount, minimum lock, lock until, whitelist, or customized external helper contracts.
If the pair used to create the Chemical pool is incentivized, it will allow the user to earn yield from both farm incentives and that particular Chemical pool at the same time.
For example, if a user creates a staked position for ETH/USDC and there is an active farm for that pair, the staked position will have yield-bearing properties. Upon depositing the staked position into a Chemical pool, the user's position will earn LP trading fees and rewards from the Genesis pool as well as the yield from the farm incentives.
On the other hand, if a user creates a staked position for ZKLAB/USDC and there is no active farm for that pair, the staked position won't have yield-bearing properties. However, upon depositing the staked position into a Chemical pool, the user's position will still earn LP trading fees and rewards from the Chemical pool.
Chemicalpools are a great way for users to earn additional rewards on top of their staked positions, while also benefiting protocols and communities by incentivizing long-term liquidity provision.