> For the complete documentation index, see [llms.txt](https://docs.goosefx.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.goosefx.io/goosefx-amm/gamma/fusion.md).

# Fusion

**GAMMA Fusion** is an enhancement for GooseFX's GAMMA, designed to optimize liquidity utilization by deploying unused capital into external yield-generating platforms.

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[Learn about AMMs](/goosefx-amm/gamma/learn-about-amms.md)
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### GAMMA Fusion

<figure><img src="/files/9M0fUAiUPXF229zlCJSI" alt=""><figcaption></figcaption></figure>

1. **Dynamic Liquidity Allocation**
   * A portion of unused capital from pools will be deployed into external protocols like Kamino Finance, Drift, Marginfi to earn yield.
   * Blue-chip and primary token pairs (SOL-USDC) will be prioritized due to their stable price movements.
   * A maximum of **15% of TVL** can be deployed to external protocols.
2. **Rebalancing Mechanism**
   * Regular rebalancing to withdraw or deposit liquidity based on market volatility and pool utilization.
   * **Rebalancing occurs every 15 minutes**, with the flexibility to be adjusted as needed.
3. **Integration with External Protocols**
   * Liquidity will be allocated to external lending/borrowing platforms or concentrated liquidity pools based on TVL thresholds. Trusted platforms like Kamino Finance, Drift, Marginfi and others.

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**Pool State Modifications**

* A new variable, `max_shared_liquidity`, will determine the proportion of liquidity deployable to external protocols.

**New Instructions**

* **Rebalance Pool**: Automatically adjusts liquidity to stay within the `max_shared_liquidity` threshold.
* **Deposit Shared Liquidity**: Allocates unused liquidity to external platforms.
* **Withdraw External Deposits**: Reclaims liquidity from external platforms for pool needs.

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#### Risk Mitigation

1. **Smart Contract Risks**: Full audits of new functionalities.
2. **Liquidity Constraints**: Ensure external platforms have no lock-in periods, avoiding liquidity shortages during high trade volumes.
3. **Operational Risks**: Implement fallback mechanisms to withdraw liquidity during protocol downtimes.

***

### FAQs

* **Does Fusion affect swap fees or slippage?**\
  No, swap fees and slippage remain the same. Fusion optimizes idle capital to maximize yields.
* **Can I create permissionless fusion pools?**\
  Yes, users can create permissionless pools, but Fusion is only added to select blue-chip pools chosen by the GooseFX team.
* **Are there risks to my deposited liquidity with Fusion?**\
  Yes, there is a small risk from external platforms’ smart contracts, where Fusion deploys idle capital.
* **How does Fusion impact my LP earnings?**\
  Fusion boosts pool yields by using idle capital in external lending protocols.
* **What percentage of liquidity is deployed externally?**\
  &#x20;A maximum of **15% of TVL** can be deployed to external protocols.
* **Will my LP tokens or positions change?**\
  No, Fusion does not alter your LP tokens or positions.
* **Can I withdraw 100% of my liquidity with Fusion active?**\
  Yes, you can withdraw your entire LP position at any time.
* **Are there lock-in periods for external liquidity?**\
  No, there are no lock-in periods for liquidity deployed externally.

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