> For the complete documentation index, see [llms.txt](https://docs.peapods.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.peapods.finance/pods-2/pod-liquidity.md).

# Pod Liquidity

A successful Pod requires liquidity so that [arbitrageurs](/pods-2/pod-arbitrage.md) can trade the Pod against the underlying asset.

An ideal Pod is one with deep liquidity and highly volatile underlying assets for both Pod assets liquidity pairs ([see pOHM: The Pod amplifier](/pohm-the-pod-amplifier.md)). In order to incentivize liquidity for a Pod, the protocol allocates up to 90% of Pod fees towards rewarding LPs.

LPs are incentivized with PEAS tokens. These tokens are bought from the market using the aforementioned fees.